Mighty Craft will be bringing distribution of Adelaide Hills Distillery products in-house from next month.
To date, SouthTrade has managed the distribution of all Adelaide Hills Distillery products including 78 Degrees Gin, 78 Degrees RTD mixer range and 78 Degrees Whiskey with 150K bottles per year currently being sold.
Mark Haysman, Managing Director of Mighty Craft said: “We see great opportunity in transitioning the sales and distribution of 78 Degrees back into the Mighty Craft team from mid-November. One of the key strategic drivers of the acquisition was our ability to manage sales and distribution directly and we believe bringing in-house will drive growth and profitability over the coming years.
“SouthTrade has done a fantastic job to grow this business over the last three years, and we sincerely thank Ray Noble and the team for the growth they have driven and the productive discussions regarding bringing it back in-house.”
Mighty Craft has an existing in-house sales and distribution capability, and made the decision to bring distribution back in-house soon after the acquisition of Adelaide Hills Distillery in June in order to maximise the available synergies and accelerate growth.
The 78 Degrees brands have significant further growth potential, both in Australia and internationally, and are an integral part of the overall product portfolio and a key pillar of Mighty Craft’s growth ambition over the coming years.
78 Degrees will now form part of Mighty Craft’s world-class award-winning spirits portfolio, including 78 Degrees, Kangaroo Island Spirits, Seven Seasons, Brogans Way and the soon to be launched premium Hidden Lake Tasmanian Whisky brand.
SouthTrade and Mighty Craft have entered into a confidential deed of settlement, which includes arrangements for the purchase of any 78 Degrees stock that may remain as at mid-November 2021 when the transition occurs.