Hawthorn and Mildura craft breweries sold
If a hospitality group and a decidedly non-craft brewery snap up two craft brewers it can only mean one thing: craft beer is hot. In early February 2017, Dixon Hospitality Group, Australia's largest non-gaming pub group, bought the Hawthorn Brewing Company for an undisclosed sum.
Hawthorn was founded 2009 by three entrepreneurs from Melbourne and has operated as a contract business since.
This is the latest acquisition for Dixon, which only late last year bought six pubs in Sydney from the receiver Ferrier Hodgson on behalf of Keystone Group, which had gone under year after not being able to refinance an AUD 80 million (USD 61 million) debt to private equity firms KKR and Olympus Capital. Founded by a father-and-son-duo, Dixon was established in 2012, currently operates 37 venues and is said to be pursuing a stock market listing.
This is where Broo, an AUD 50 million (USD 38 million) beer company, already is. Broo was launched by Kent Grogan in 2009. In 2011 he offered shares in the business to anyone who bought a slab of his beer. Last year, the business, which boasts a kangaroo on its logo, successfully raised AUD 10.5 million (USD 8 million) via the issuing of 52.5 million shares before listing on the Australian stock exchange.
Some of the proceeds must have gone into buying Mildura brewery, a well-known Australian craft brewery which was founded in 2004. In 2012 it was bought by the well-known chef and TV personality Stefano di Pieri. Reportedly, it was put on the market last year and was sold to Broo for AUD 1 million (USD 760,000).
With an estimated capacity of 10,000 hl, Mildura produces a range of beers and serves as a contract brewer for several others. It has a 25 hl brewhouse and a bottling line. Considering its size and equipment, AUD 1 million seems like a steal. But apparently, the brands are struggling and Mr di Pieri has been trying to sell the business for a while. With more than 300 craft breweries fighting over a small beer market share of perhaps 6 percent, there is lots of competition in Australian craft beer these days.
Media say that Broo has made remaining 100 percent Australian owned part of its publicity campaign and, having added the Australian Draught brand to its original Broo Premium Lager, has looked to highlight the foreign ownership of mainstream brands produced by the likes of Lion and CUB.
