Revellers looking for a buzz will soon have additional access to super high strength beer in Australia with Gage Roads Brewing (ASX: GRB)  having secured an exclusive distribution deal with San Miguel to import Red Horse beer (8%) and other brands. 

San Miguel is one of the world’s largest and oldest beer companies with distribution in more than 50 countries and the largest publicly listed company in the Philippines with a market cap around $7 billion. 

Under the agreement, Gage Roads will import and distribute San Miguel Pale Pilsen, San Mig Lower Carb,  specialty high alcohol beer Red Horse and additional products as mutually agreed under their Good Drinks division. Between them, the three brands currently account for approximately 40,000 cartons sold per annum by the current distributor. 

“We are excited and proud to partner with San Miguel and to include such a well regarded range of international lagers into our portfolio.” said Gage Roads Managing Director, John Hoedemaker. 

“In keeping with our broader strategy, the addition of San Miguel Pale Pilsen, San Mig Lower Carb and their specialty high alcohol brand Red Horse provides diversity and depth to our portfolio, access to broader segments of the beer market and scale for the Good Drinks national sales and marketing capability.” 

Good drinks will commence distribution to nationwide chains and independent retailers in July, and represents a stepping stone towards their strategy to become Australia’s top independent supplier to the national beer market. At present, the Good Drinks portfolio includes Gage Roads, Albys, Matso’s and Hello Sunshine. 

The company also has a seperate venues strategy in place which has been halted by COVID-19 but is planning to open their Atomic Beer Project brewery and taproom in Redfern NSW, around September. 

To facilitate growth of its own brands and inventory profile, Gage Roads secured a $12m funding facility from Commonwealth Bank of Australia earlier in the month

For the half year ending 31 December 2019, Gage Roads reported revenues of $19.3m which was up 10% on the corresponding 2018 period and $337k EBITDA (down 84%). Addressing this, the Company has invested packaging lines and salesforce growth to capitalise on growing consumer trends towards independent breweries and craft beers.