Mighty Craft has unveiled plans to offload Mismatch Brewing Company and 78 Degrees, passing the baton to a consortium known as Mismatch Brewhouse Publicans, steered by ex-Carlton and United Breweries CEO Peter Filipovic.
This $7.2 million deal transfers the brands, intellectual properties, and operational assets to the consortium, marking a strategic shift for Mighty Craft amid its broader portfolio adjustments.
This transaction, earmarked for completion by May 31, 2024, signifies a return to roots for the South Australian brands, under the guidance of a group seasoned in the Australian hospitality sector. The deal also involves the transition of the Mismatch Brewhouse venue and production facilities, embedding these brands deeper into the local fabric.
Mighty Craft’s strategic divestiture comes as part of its ongoing recalibration, following a $47 million acquisition spree that included these brands. The decision to sell aligns with Mighty Craft’s effort to streamline its operations and reduce its debt, with half of the proceeds earmarked for repaying senior lenders.
The move is underscored by the industry’s challenging dynamics, with Mighty Craft navigating through turbulent times. Despite this, the sale to a consortium led by a figure as experienced as Filipovic hints at a promising future for Mismatch Brewing Company and 78 Degrees, potentially rejuvenating these brands with fresh strategic vision and operational expertise.
For Mighty Craft, this sale represents a critical step towards financial stabilization and refocusing on its core operations. With revenue up by 25% yet carrying significant losses, the company is in a crucial phase of transformation, seeking to balance its portfolio for sustained growth.
The industry watches closely as Mighty Craft reshapes its strategy, with this sale marking a significant pivot. The outcome of this divestiture could set a precedent for how craft brands navigate the complex landscape of the Australian beverage industry, balancing growth ambitions with operational realities.
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