Adelaide Hills Distillery, Mismatch Brewing, Hills Cider, Lot 100 sold to Sparkke, KI Distillery owner Mighty Craft
A group of well-known Adelaide breweries and distilleries, including a popular venue, have been sold to a public company in a $47m deal.
A group of Adelaide friends and boutique business operators have joined the fold of ASX-listed company Mighty Craft in a $47m deal.
Mighty Craft, which describes itself as craft industry accelerator, has continued its national shopping spree with the purchase of Adelaide Hills Distillery, Mismatch Brewing and Hills Cider.
The deal also includes 75 per cent ownership of the LOT.100 venue, a popular distillery, cellar door, restaurant, and function centre located on an 84-hectare property in the Adelaide Hills.
The three businesses and the venue joining Mighty Craft’s stable enjoy strong local patronage and are award-winning businesses for their unique beer and spirits products.
Co-founders of the businesses, Sacha La Forgia, Ewan Brewerton, Steve Dorman and Toby Kline will remain with Mighty Craft and continue to drive growth for the brands, said Mighty Craft’s managing director Mark Haysman, a former chief executive of Port Adelaide Football Club.
The deal is expected to deliver a near-60 per cent revenue boost in financial year 2022 for Mighty Craft, which also owns KI Distillery and co-owns Sparkke Brewery in SA besides other boutique businesses like Jetty Road Brewery, Green Ant Gin, Slipstream Brewing and Seven Seasons nationally.
Forecast earnings before taxes in the same year is expected to come in at $6m, bringing immediate profitability to the Mighty Craft model.
“The combination will transform Mighty Craft into a scaled alcohol producer, wholesaler, and retailer, as well as create one of the largest craft spirit producers in Australia and poised to be a leading player in the craft whisky market,” Mr Haysman said.
“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 consolidating our market position, and making us a real competitor in the craft beverage industry,” he said.
Adelaide Hills Distillery founder and head distiller Sacha La Forgia said he is excited by the opportunities for growth and profitability.
“We’re thrilled to be part of an incredible team that champions the growth of the Australian craft beverage industry,” he said.
“Their knowledge and team will give us a unique position to grow; not only with our current portfolio but also our emerging whisky offer …”
Mighty Craft, formerly known as Founders First, was launched in 2017 as a business providing debt and equity funding to the craft brewers and distillers.
Since listing in December 2019, the business, valued at $56m, has become a juggernaut, steadily acquiring award-winning small boutique operations around the country in the market made up of more than 1700 operators.
Its share price was steady at 37c in early trade on Thursday.
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