Fresh from completing their $29 million capital raise last week, beverage company Mighty Craft (ASX: MCL) has confirmed its entry into the zero-carb beer market which will extend its footprint in the healthy alcoholic beverage sector.
The launch of ‘Better Beer’ will be facilitated via a new partnership between social media company The Inspired Unemployed (TIU) and Torquay Beverage Company which Mighty holds a significant equity stake in.
“Health, wellbeing and moderation are key macro trends culminating in ‘better for you’ drinks globally, as is partnering with modern day influencers,” said Mighty Craft Managing Director, Mark Haysman.
“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.
“We are pleased to continue our support for Torquay Beverage Co. 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”
The new venture will be 40% owned by TIU and 60% by Torquay Bev Co which is undertaking its own $1.4 million unlisted capital raise to launch the new beer product. As part of the raise, Mighty Craft will contribute $510k and convert $740k of debt to equity which will increase Mighty Craft’s stake from 50% to 61%.
At present, there are very few zero-carb beers offered in Australia with Burleigh Bighead perhaps the most well known, and sold across major retailers at a premium, around $70 per slab.
Seeking to capitalise on the demographic which is easily influenced via social media whose thirst for healthy alcoholic alternatives is rapidly rising, Mighty Craft anticipates Better Beer to be launched by October 2021, in time for Summer.
The zero-carb beer has already received strong support from retail stores with more than 1,500 confirming they will stock the product. It will also become the first national beer launch for Mighty Craft which has primarily distributed products for other brewers.
Factoring in this latest capital raise, it gives Torquay Bev Co a pre-money valuation of $3.6 million with funds raised also to be applied to launching other products behind Better Beer.
“I am very pleased to be strengthening our ties with Mighty Craft. Our partnership with Mighty Craft has been, from the very beginning, one of innovation, productivity and collaboration,” said Torquay Bev Co Founder and CEO, Nick Cogger.
“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.”
With the addition of Better Beer and upcoming launches of a boozy, yet healthy, seltzer, Torquay Beverage Company is expecting to deliver more than $5 million in sales for FY22.
Having recently completed their own $29 million capital raise to fund their acquisition of Adelaide Hills Group, Mighty Card is now one of the largest craft spirit producers in Australia.
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