As one of the unluckier IPO’s to have listed on the ASX right before the coronavirus pandemic hit, craft beer company Founders First (ASX: FFL) is set for a much more active FY21 having secured 2000 new distribution points for their beer portfolio.
From August 2020, packaged craft beers within the Founders First portfolio will be available through distribution points via Liquorland, First Choice Liquor and Vintage Cellars which are owned by Coles, as well as Dan Murphy’s and BWS which are owned by Woolworths.
“Quality distribution is the leading indicator of future sales,” said Founders First CEO, Mark Haysman.
“These results reflect both the quality of our portfolio of craft beer products and the unique capability that the FFL sales team (Indie Craft Collective) brings to the table.
“We expect distribution gains to be balanced across all channels once the outcomes in the Independent channel and On-premise are finalised. We are very pleased with the outcome and excited for our brands.”
Whilst national distribution via the Coles and Woolworths networks will have a material impact on Founders First revenue in FY21, the Company is confident its independent retail distribution and ‘Partnership Program’ will gain traction as COVID-19 restrictions are gradually eased. Through the Partnership Program, venues can gain access to Founders First portfolio beers on tap.
Listing on the ASX in December 2019, Founders First aims to build the world’s strongest craft beverage collective through supporting and growing independent craft brewery and distillery businesses. By partnering with Founders First, craft beer producers can accelerate growth through equity and fund raising within Founders First’s services, enabling brewers/founders to focus on their strengths.
Further strengthening their portfolio of craft beers, Founders First has partnered with six new products that will hit the shelves of national retailers from August which include: Jetty Road XPA, Ballistic Hawaiian Haze, Slipstream Pale Ale, Sparkke Red Ale, Sauce Peach Berliner Weisse and Sauce Hop Sauce Pale Ale.
“Founders First has the balance sheet and capability to invest behind these brands which otherwise would not be possible for craft players on their own,” said Haysman.
The market responded well to news of six new brands for the portfolio and national distribution with FFL shares reaching a high of $0.295 in the first hour of morning trade, a rise of 13.4% on their previous $0.26 close.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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