Mighty Craft Managing Director Mark Haysman has just announced that the ASX-listed craft drinks accelerator has entered into an agreement to acquire three of South Australia’s celebrated craft beverage businesses including Adelaide Hills Distillery, Mismatch Brewing and Hills Cider.
The deal also includes 75% ownership of the LOT.100 venue, which is a destination distillery, cellar door, restaurant, and function centre located on an 84-hectare property in the Adelaide Hills.
As part of the $47 million transaction, the businesses’ co-founders Sacha La Forgia, Ewan Brewerton, Steve Dorman and Toby Kline will be retained as they continue to drive growth for the brands.
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.
Haysman is excited by the cross-market opportunities that will be created by the enlarged craft beverage portfolio, bringing the required scale, synergies, and profitability to the Mighty Craft business.
“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.
“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 says.
The acquisition will propel Mighty Craft’s ambitious whisky acceleration program. With Adelaide Hills Distillery’s award-winning 78 Degrees range adding to the existing volumes, Mighty Craft will boast a diversified portfolio of whisky at differing price points, taste profiles and maturity.
Similarly, on the brewing side, the addition of Mismatch Brewing will bring significant economies of scale and increased geographic coverage to Mighty Craft’s craft beer portfolio. This high quality, lowcost production facility will enable production synergies as well as the opportunity to take this fastgrowing and highly awarded brand beyond the local market and expand distribution to the eastern states.
Haysman says that having the highly specialised production and management from the Adelaide Hills based businesses in Mighty Craft to help integrate the brands, from a production, distribution, and sales and marketing perspective, was an essential part of the deal.
“This merger wouldn’t have been possible without the support of Sacha, Ewan, Steve and Toby and we warmly welcome them to the Mighty Craft team. They will guide us through this transition, ensure alignment of both our interests and people, and drive growth for all our brands,” says Haysman.
Adelaide Hills Distillery’s Founder and Head Distiller Sacha La Forgia is equally 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. 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.”
Toby Kline, Co-founder of Hills Cider, and Ewan Brewerton, Co-founder of Mismatch Brewing Co. & LOT.100, agree.
“This next chapter marks our ability to supercharge our growth and better support our customers. The integration of our teams is exciting and between Mighty Craft and our business, we will be stronger together in growing the Australian craft industry.”