It’s been a busy week for antipodean craft breweries, with three changing hands in as many days: Mildura Brewery, Hawthorn Brewing Company and Tuatara Brewing Company.
Broo Limited announced it has bought Victoria’s Mildura Brewery for $1 million. The brewery produces seven craft beer brands and was previously co-owned by celebrity chef Stefano de Pieri.
“The acquisition of the Mildura Brewery will provide Broo with a commercial brewery facility to immediately commence its own beer production, providing Broo with the opportunity and capacity to expand distribution of its beer products nationally,” the company said in a statement.
“This will also significantly reduce production costs in turn providing increased profitability across sales of existing brands.”
Boo founder Kent Grogan told The Australian Financial Review his $50 million company is on the lookout for more acquisitions beyond the Mildura Brewery, which has been operating in north-west Victoria since 2004.
“We’re actually quite aggressively looking,” Grogan said.
Broo has been a surprise player in the Australian craft beer scene. The company raised $10.5million during a six-week initial public offering last year, issuing 52,500,000 ordinary shares at $0.20 cents per share to achieve market cap of $121.6million.
The company also announced in November that it had signed a significant distribution deal with China’s Jinxing Beer Group.
Hospitality and brewing collide for Dixon
The Crafty Pint revealed this week that Dixon Hospitality has purchased Hawthorn Brewing Company.
Dixon has been on a major spending spree in the hospitality and brewing world. Among its recent acquisitions: Beer DeLuxe, the Open Door Pub Co and the Keystone Group (owner of six Sydney venues including Bungalow 8 and Cargo Bar).
To manage its growing beer business, it has created a new banner, Salt Brewing.
“It’s really exciting times for us,” says Dixon Hospitality’s GM Sales and Marketing Marcia English.
“We have got our commitments with Lion and we need to and want to bring our customers interesting craft beers from other suppliers. This opportunity is about getting involved with something that we think really has a future and bringing that to the market. If the two worlds [hospitality and brewing] can collide, then how fabulous.
“We love what Hawthorn has done and want it to keep growing in the direction it was heading.”
Tuatara assures customers quality won’t be affected by sale
Meanwhile, New Zealand’s DB Breweries announced the purchase of Tuatara Brewing Company.
In a statement Tuatara’s founder and master brewer Carl Vasta insisted the brand would “continue to produce its award-winning craft beer from the current premises located on the Kapiti Coast and the pilot brewery – The Third Eye, in Wellington.”
Vasta added that he “continues to be passionate about the New Zealand craft beer industry and is committed to being part of Tuatara and its future growth. We’re changing the shareholding, we’re not changing the recipe.
“Brewing beer and talking about beer is my passion. With the support of my family, we have been able to grow Tuatara into a successful business. In order to take things to the next level we need assistance. That’s why we’ve teamed up with DB. Now, I intend to get back to the brewing and step out of the business end.”
Andy Routley, managing director of DB Breweries said: “Craft beer is an exciting segment of the Kiwi beer market and Tuatara is the champion of Kiwi craft breweries.”
“We want to see Tuatara achieve its full potential, so we’re not going to mess with a winning formula.
“I have a great deal of respect for what Carl and the team have achieved and we are excited to be able to tap into their craft beer knowledge and experience. The way we see the business developing is relatively simple: we’ll leave it to Tuatara to make great beer. We’ll help get it to more people.”
