Mighty Craft, the venue operator and craft beverage accelerator, is investing in a new company which will launch a zero-carb beer dubbed ‘Better Beer’.
The release is being made in collaboration with social media influencers The Inspired Unemployed, who will take a 40 per cent stake in the new beer company. Torquay Beverage Company, majority owned by Mighty Craft, will own the remaining 60 per cent.
National ranging has already been agreed and 1,500 bottleshops will be selling the beer from October 2021. It is being contract brewed at Australian Brewing Co. a joint venture brewery between Casella Wines and Coca-Cola Amatil (CCA) which was launched in 2013.
ASX-listed Mighty Craft agreed to a rights issue for Torquay to fund the working capital for the launch of the beer and two other products this year to the tune of $1.4 million.
Mighty Craft will contribute $510,000 in cash and convert $740,000 of debt into equity, and the remaining shareholders, namely the Inspired Unemployed, will contribute $150,000.
The social media influencers will be accountable for marketing and PR to support the launch and ongoing sales of Better Beer.
Mighty Craft, then Founders First, acquired Torquay Beverage Company in 2019, when it was called K.BOOCH and focused on alcoholic kombucha.
It was with Torquay Beverage Company that Mighty Craft launched the ASX-listed company’s first seltzer in 2020 and this year, the company is expected to deliver $5 million in sales for FY2022.
As a result of the latest deal, Mighty Craft will raise its equity stake from 50 per cent to 61 per cent.
Better Beer will be joined by two new product releases, a tequila seltzer ‘ranch water’ – a simplified margarita cocktail – and its NOSH Cola.
Mark Haysman, CEO and managing director of Mighty Craft said that the new beer company launch landed at an intersection of a number of alcohol industry trends.
“Health, wellbeing and moderation are key macro trends culminating in ‘better for you’ drinks globally, as is partnering with modern day influencers,” he said in a media release.
“Creating a new business with the Inspired Unemployed guys is both exciting and powerful given their direct reach.
“This is the first national launch for Mighty Craft in the beer category which reflects the potential with this partnership.
“Additionally, we are seeing a big opportunity in the tequila RTD market and NOSH continues to perform very well expanding its range and distribution with three
products now in market.
“Participating in this capital raise means providing the necessary funds to realise shareholder value within Torquay Bev Co in the short term while we build our spirits business, in particular whisky”
Nick Cogger, founder and CEO of Torquay Bev Co said it was a case of being stronger together.
“The Inspired Unemployed guys are also really excited to partner with us and Mighty Craft and together we can’t wait to bring the easy drinking, Better Beer to consumers, one of only two local zero carb, full-strength beer products on the market,” he said.
Mighty Craft reported in its most recent quarterly results that while it made a loss of $1.4 million as it continues to expand, it returned record revenues accelerated by growth in RTDs and spirits.
Last month the accelerator announced it had acquired Mismatch Brewing Co.’s parent company, comprising Mismatch, The Hills Cider Company, Adelaide Hills Distillery and 78 Degrees, which produces whisky, gin, vodka and RTDs.
At the time, Mighty Craft said that as a result of the deal, it would become a scaled alcohol producer, wholesaler and retailer with ‘significant’ economies of scale.