Craft drinks accelerator Mighty Craft has agreed to acquire three south Australian craft beverage businesses – Adelaide Hills Distillery, Mismatch Brewing and Hills Cider – for AUD 47 million (approx. $36 million).
Mighty Craft says the acquisitions will see it become one of the largest craft spirit producers in Australia; and enable it to transform into a scaled alcohol producer, wholesaler and retailer.
The three firms are co-located in the Adelaide Hills, and the deal also includes a 75% ownership stake in the Lot 100 venue – a destination distillery, cellar door, restaurant and function centre located on the property.
Adelaide Hills Distillery’s portfolio includes a collection of gins and Australian whisky under its 78 Degrees brand name, as well as a range of vermouths and aperitifs. Hills Cider produces a range of apple cider, pear cider and apple ginger hybrid.
Meanwhile, the integration of Mismatch Brewing is said to increase the geographic reach of Mighty Craft’s craft beer portfolio particularly to the eastern states; as well as scale its brewing capabilities.
“The combination of the two businesses will mean Mighty Craft’s revenue is forecast to grow by 57% in FY22 with forecast EBITDA in FY22 to be $6 million, bringing immediate profitability to the Mighty Craft model,” said Mighty Craft managing director, Mark Haysman.
“This increased scale and the opportunity to realise significant efficiencies will truly leverage our operating platform and enhance Mighty Craft’s ability to accelerate growth of new and existing craft businesses, as well as consolidate our market position, and make us a real competitor in the craft beverage industry.”
Following the transaction, co-founders Sacha La Forgia, Ewan Brewerton, Steve Dorman and Toby Kline will remain with their businesses.
According to Mighty Craft, the three companies’ current production and management teams will help integrate the brands from a production, distribution and sales perspective.
Adelaide Hills Distillery’s founder and head distiller, Sacha La Forgia, added: “We’re thrilled to be part of an incredible team that champions the growth of the Australian craft beverage industry. Their knowledge and team will give us a unique position to grow; not only with our current portfolio but also our emerging whisky offer that will now be part of one Australia’s largest craft spirit producers.”
© FoodBev Media Ltd 2021
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