Page 6 - Food&Drink Business magazine September 2022

NEWS
Hard seltzers
hustle in on
XXXX
A proposed $5 million expansion to the XXXX Brewery in Queensland, will add large scale production capabilities for hard seltzers and other ready-to-drink (RTD) alcoholic beverages, Lion says.
The move to add hard
seltzers and RTDs to the
iconic site reflects the changing channel mix in the alcohol market.
Research firm IRI said the Australian hard seltzer market grew 282 per cent in 2021 to become a $210 million category. It now accounts for 16 per cent of the light RTD segment.
Recent data from Roy Morgan shows Australian consumption of RTDs (including hard seltzers) is at an all-time high, while beer consumption fell 2.3 per cent.
XXXX sales director Patrick Donohue said, “The beer and alcohol beverages market continues to evolve, as do consumers’ tastes and preferences. It is important that we innovate and set the brewery up for long-term success.”
Donohue said Lion would produce its seltzer brands at the site, including domestic production of White Claw.
In 2020, Lion signed a deal with the owner of White Claw, Mark Anthony Brands International, to import, market and exclusively distribute the beverage in Australia.
Since then, it has sold more than 16 million cans, with 11.4 million cans sold between October 2021 and February 2022.
According to Lion, White Claw is the top selling hard seltzer in Australia and worldwide, holding a 34 per cent share of the category in Australia. One in three seltzers sold in Australia is a White Claw, Lion said.
Donohue said, “Mass production of seltzers and RTD beverages requires bulk ethanol storage, and so we will lodge a development application with Brisbane City Council in the coming weeks to build a new facility on the current site to ensure we are doing this in the safest way possible.”
As part of Lion’s application, community consultation will begin laterthisyear. ✷
Good Drinks acquires Stomping Ground
GOOD Drinks Australia (GDA) has acquired Victorian craft brewery Stomping Ground after a “long courtship”, for $7 million cash, 4.5 million GDA Ordinary Shares and a trailing five-year performance component.
Stomping Ground was founded in 2016 by Steve Jeffares, Guy Greenstone, and Justin Joiner. Its Collingwood brewery currently produces roughly 1.5 million litres a year, with capacity to produce more than 2.1 million annually.
GDA said, “Based on current volumes of around 1.5 million litres and current venue performance, Stomping Ground is expected to contribute $1.5 million to GDA earnings in its first year with a target to growing annual volume to four million litres by FY27.”
GDA head of strategy Aaron Heary said, “Stomping Ground founders were looking to accelerate growth and initially sought to raise capital to fund a
Stomping Ground founders (l-r): Guy Greenstone, Steve Jeffares, and Justin Joiner.
major expansion in their sales team, while we were seeking to accelerate awareness and branded sales growth in Victoria through our existing venue strategy.
“During this process it became clear that the joining of the two businesses would achieve both objectives faster and more effectively.”
Jeffares said, “There has been a long courtship as we got to know each other, and Guy,
Justin and I are excited and confident that the merging of our two businesses will help us both become even stronger.”
GDA managing director John Hoedemaker said, “We know how to integrate established brands into our portfolio and with our strength of people, sales, marketing, and distribution expertise we expect to grow the Stomping Ground brands to their full potential.” ✷
B Corp for Unilever ANZ a “tremendous milestone”
CEO of Unilever Australia & New Zealand (ANZ), Nicky Sparshott, says the company’s B Corporation certification is a “tremendous milestone” and will “turbocharge” its focus on sustainability across the business.
B Corp certification, run by
B Lab, is awarded to companies that demonstrate verifiable positive impact through policies and practices across five areas – governance, workers, communities, customers, and the environment.
The certification process examines a company’s entire operations and requires the business to make a legal commitment by changing their corporate governance
approach to be accountable to all stakeholders.
It was an 18-month process for Unilever ANZ. The company has 900 employees in the region, sources from more than 1800 suppliers, and has three factories that produce 70 per cent of what it sells locally. Its manufacturing facilities have been run on 100 per cent renewable electricity since 2020. CEO of B Lab Australia and Aotearoa New Zealand, Andrew Davies, said, “When businesses of the size and scale of Unilever ANZ certify, it sends a powerful signal that will further advance change in the consumer goods sector, and our broader global economic system.
“It comes with a significant burden of greater transparency and requires continuous improvement to maintain the certification over time. It’s a credit to the team at Unilever ANZ that they have been willing and able to achieve this with such a large, complex business.”
Sparshott said, “From the suppliers who provide our essential ingredients and materials; to our team members, the partners that sell our products, and the people who enjoy them every day – we want to create a coalition of the passionate and willing, to galvanise a stronger, more inclusive, equitable and regenerative economy for all.” ✷
6 | Food&Drink business | September 2022 | www.foodanddrinkbusiness.com.au