Inside Beechworth drinks maker Billson’s Beverages rescue deal
The mystery buyer behind the rescue deal that kept Beechworth drinks maker Billson’s out of liquidation has been revealed as American giant Coca-Cola.
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The mystery buyer of Beechworth drinks maker Billson’s has been revealed as Coca-Cola.
The Coca-Cola Company announced on Friday that they were behind the rescue deal that ultimately saved the beloved manufacturer from liquidation.
The American giant entered an agreement to acquire Billson’s alcoholic ready-to-drink products.
Current owners Nathan and Felicity Cowan will continue to produce their well-known cordial, soda and beer range – under a new brand name – and operate their Last St hospitality business.
Coca-Cola vice president of marketing ASEAN and South Pacific Matthias Blume said the acquisition allowed the company to expand its alcoholic ready-to-drink range in Australia.
“We are looking forward to expanding on those foundations and bringing great-tasting Billson’s products to even more Australians,” he said.
Coca-Cola said they had no plans to expand Billson’s beyond Australia.
Mr Cowan said the deal was an “emotional and proud milestone” for the Billson’s team.
“We’re thrilled about what we’ve built together and delighted that Billson’s will continue for everyone to enjoy for many years to come,” he said.
“It’s truly an honour that the world’s most iconic beverage company sees a bright future for Billson’s.
“We believe wholeheartedly that the brand is in the best possible hands for its next incredible chapter, and we’re just as excited as you to see where it goes from here.”
Most staggering figure in Billson’s rescue deal
Much loved Beechworth drinks maker Billson’s collapsed with a staggering $67,000 in unclaimed gift vouchers, new documents show.
The amount is revealed in a 74-page deal made by the owners to keep the company afloat.
The settlement, made by husband-and-wife owners Felicity and Nathan Cowan after they put Billson’s Beverages into voluntary administration in July with debts of up to $21.3m, will see them continue to trade the business under a new corporate structure.
The deal, detailed in a new report by McGrathNicol administrators Matthew Hutton and Robert Smith, outlines $67,769 in unclaimed gift vouchers and $280,113 in continuing employee claims. Both will be paid in full.
More than $8,000 in tips owed to continuing employees will also be paid, and $12,338 owed to creditor Crown Credit Forklifts.
The owners will put in an initial cash injection of $1.8m within seven days of the deal’s commencement date.
As a secured creditor, NAB’s $12.2m debt will be paid off in full upon completion of the sale of the company’s assets.
Meanwhile, 141 unsecured creditors – owed $5.5m – will have to settle for just seven to 10 cents on the dollar.
The report also details a trust fund for the distribution of money owed to creditors.
Administrators’ and trustees’ remuneration, costs and expenses will be paid off first, followed by employee claims and other priority creditors.
A pool of $550,000 will then be distributed to nonpriority creditors.
The operation of the hospitality and production business will continue and all 42 remaining staff will remain employed by Billson’s.
The purchaser of the business’s assets, including the company’s plant and equipment, intellectual property and stock, was not disclosed in the document.
The buyer will also get their hands on the company’s intellectual property rights and formulations in respect of the company’s alcoholic ready to drink business.
Mr and Ms Cowan previously said on social media they were “truly grateful” for creditors approving their proposal to restructure and recapitalise the business.
“The restructure will allow us to refocus on what we love most: the Beechworth venue experience, our range of traditional flavours and the site’s pristine alpine spring water,” they said.
“Importantly, this plan safeguards roles for all of our amazing, resilient team members, with opportunities for new hires / rehires to help us through what promises to be a bustling summer.
“Whether you’ve enjoyed one of our drinks, visited us in Beechworth, or sent a kind message of support on social media, you’ve played a vital role in keeping the Billson’s dream alive.”
Billson’s, which operates from a historic brewery in Beechworth in eastern Victoria, is best known for their ready-to-drink vodka, craft beer and cordial, commonly sold at Dan Murphy’s, BWS and Coles.
The Herald Sun previously revealed an overambitious sales drive, overspend on marketing, leaking cans, a breakdown in a production line and the cost-of-living crisis led to their collapse.
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