Mighty Craft’s sales revenue grew by 277 per cent last quarter, thanks to exponential growth in its spirits/RTD range, the transition by the business to act as distributor for all its investee partners and further craft brand acquisitions.
Wholesale growth for the business continued to track well ahead of market with beer and spirits/RTD delivering 74 per cent and 193 per cent growth respectively this past quarter. Growth is expected to continue into FY22. Mighty Craft’s Spirits/RTD category now represents 34 per cent of wholesale sales, compared to 23 per cent of sales in second quarter.
NoSH Boozy Seltzer, from Torquay Beverage Company, was a standout performer with sales of $500K since launching just four months ago.
Last quarter, Mighty Craft launched Seven Seasons with Daniel Motlop and commenced the $3.5 million redevelopment of the Kangaroo Island Distillery into a destination craft distillery venue/cellar door and one of Australia’s largest craft distillery operations. Five hundred thousand dollars of the investment is from the South Australian Government.
Mighty Craft is also now a 32% shareholder in Sparkke.
On-premise sales contributed $4.5m, up 151 per cent compared to this time last year. However, as much as on-premise revenue is improving with Jetty Road in Dromana and Lorne, Slipstream in Brisbane and Foghorn in Newcastle all back to pre-covid trading levels, the two Mighty branded venues are currently at 70% of optimal trading levels.
Mighty Craft partnered with Lindsay Fox owned, BevChain last year for infrastructure and supply chain operations support. Last quarter the partnership expanded to incorporate all Mighty Craft investee partners, not just its beer brands as was originally trialled.
The partnership has led to logistics simplification, lower costs and improved customer service for the Mighty Craft and their retail partners.
Mighty Craft Managing Director, Mark Haysman said: “The growth acceleration the business has experienced during Q3 is very pleasing and is, in part, a testament to the strength of MCL’s new distribution model that we implemented earlier in the financial year.
“Also, we have to give credit to the quality of our premium craft beverage portfolio, with our spirits/RTD brands capturing significant market share in a rapidly growing market, underpinned by market outperforming growth across both our beer and spirit portfolios.
“The investment we have made in our nationally diversified portfolio of brands, supply chain and distribution network, along with our in-house expertise in beverage sales and marketing, means we are set to create, Australia’s leading and most admired premium, craft beverage company and these latest results have moved us closer to realising our vision.”