By Stefanie Collins, editor BARS&clubs
The ASX listed Broo Limited has announced that it is set to acquire, through its wholly owned subsidiaries, Mildura Brewery as a going concern for total consideration of $1 million.
Owned by celebrity chef Stefano de Pieri, the Mildura Brewery has been operating as a brewery and pub in the Victorian town of Mildura since December 2004.
The brewery was one of the first craft breweries to open in Australia, and has also been contract brewing for other small breweries over the years.
According to a statement from Broo, the acquisition of the Mildura Brewery beer production business will “provide Broo with a commercial brewery facility to immediately commence its own beer production”, as well as “providing Broo with the opportunity and capacity to expand distribution of its beer products nationally”.
The acquisition is expected to significantly reduce production costs for Broo, therefore increasing profitability across the sales of its existing brands.
As part of the acquisition, Broo has taken over the various Mildura Brewery brands that are currently on the market, and will add them to the existing portfolio of Broo products.
Founder and Executive Chairman of Broo, Kent Grogan, said: “Broo is thrilled for this upcoming venture, which represents yet another exciting stage in the growth and development of the Company’s operations within Australia.
“The acquisition of the Mildura Brewery pub venue also provides Broo with an exciting extension of our existing business by providing a micro-brewery hospitality venue for Broo to showcase and realise retail margins for its beer products.”
Grogan added that this model of expansion is in line with the company’s domestic growth strategy, which will see further sites evaluated for future expansion.