Mick Fanning stoked as CUB buys craft beer brewer Balter

CUB has bought Balter Brewing CO and added its beer to its growing portfolio of craft beers.

Mick Fanning cheers the CUB-Balter deal in Brisbane Picture: Mark Cranitch.

It was over a Balter beer on the Gold Coast that Carlton & United Breweries chief executive Peter Filipovic and Balter Brewing Co part-owners Ant Macdonald and professional surfer Mick Fanning spoke about the future of craft beer and of the craft brewer joining the CUB family.

On Thursday the talks became a deal as CUB, which recently itself was sold to Japanese giant Asahi for $16bn, agreed to buy Balter and add it to its growing portfolio of craft beers that includes 4 Pines and Pirate Life.

The purchase price wasn’t revealed, but for a craft brewer that was only founded in 2016 by a group of mates including surfers Mr Fanning and Joel Parkinson, it is a quick and lucrative payday as CUB moved fast to secure an increasingly popular craft beer brand.

“From day one we’ve tried to not only brew the most delicious beer, but create a brand that was fun and inclusive — something the Aussie public would be proud to call its own,” Mr Fanning said.

“We’re stoked Balter has connected so well with Aussies and we can’t wait to continue our journey with CUB and get good beer into the hands of more beer lovers.’’

He and the other co-founders also believed it was the right time to sell, to make a return for the family and friends that backed the start-up beer venture, and thought it made sense to sell the entire business rather than a stake to CUB.

CUB chief Mr Filipovic told The Australian acquiring Balter gave CUB a stronger foothold in Queensland, where it recently became a market leader thanks in part to its highly successful Great Northern beer brand.

“The first thing I would say is a simple principle — it is a great beer, great people, great culture, and we are not looking to change that,’’ Mr Filipovic said.

“In terms of what it (Balter) adds to our portfolio, it adds a well credentialed brand in Queensland of which we are looking to accelerate going forward.’’

CUB is setting the goal of increasing Balter’s annual volumes to 20 million litres in five years, which would be more than a three-fold increase in output.

Balter has grown strongly in the past three years, proving to be popular in Queensland and other states, with its growth mirrored by other craft beers that are growing at a faster pace than mainstream beers.

Large brewers such as CUB and its chief rival in Australia, Lion, have been swallowing up craft brewers in the past few years with that segment of the beer market.

CUB has been on a buying spree recently, purchasing craft brewers 4 Pines and Pirate Life. Lion has been on the same path, acquiring craft brewer Little Creatures in 2012 for $380m and in 2016 it bought Byron Bay Brewing. In 2007, it paid $325m for Tasmanian brewer J Boag & Son.

Last month, Lion made a move offshore after it forged a deal to buy New Bel­gium Brewing, the fifth-biggest craft brewer in the US.

Balter CEO and co-founder Mr Macdonald said the brewer would benefit from being part of CUB. “We’re proud to have grown the business to this point and we see the benefits this new partnership will bring as Balter enters its next growth phase,” he said. “This deal will help us achieve our sustainability goals, upgrade capacity and hospitality at our Gold Coast brewery and create new jobs.

“We refused to compromise on our culture or our beer as part of this deal. It’s a testament to CUB that they didn’t want us to. They have an amazing track record of allowing craft brands to thrive, while keeping their identity, and we’re thrilled to join the CUB stable.”