Mighty Craft plans to expand into agave & rum

Mighty Craft has secured investor commitments to raise $5.2m in equity which will be used to accelerate the growth of its spirits portfolio into agave and rum distribution, accelerate the sales and distribution of Better Beer and to strengthen the company's balance sheet.

Managing Director, Mark Haysman, said that Mighty Craft's growth rates in 1H FY23 were strong and the fresh investment will support its expansion into Agave and Rum distribution 'to ensure coverage across all key categories', and trebling its spirits growth by FY25.

He said, "Mighty Craft is at a very exciting juncture given the significant growth we are experiencing and the upside potential across our portfolio."

In addition to Agave and Rum distribution, Mighty Craft says that the funds will be poured into its spirits portfolio, support its investment in whisky and prepare the company to meet the growing demand for Better Beer following an independent capital raise of $20m.

In February, Mighty Craft reported a 90 per cent jump in revenue to $45m for 1H FY23. The greatest success story, of course, is Better Beer in which Mighty Craft has a 37per cent stake. Sales revenue multiplied one hundred-fold to $19.3m and sales exceeded 4.7 million litres for the half. The exponential growth of this brand continues to lead the beer/cider performance, outperforming its spirits categories with brands including 78 Degrees, Kangaroo Island Spirits and Seven Seasons.

Venues sales grew by 40 per cent as hospitality returned to pre-COVID levels and Mighty Craft says it will have more than 435K litres of whisky under maturation by the end of FY23. It reported gains in market share for all of its brands for 1H FY23 except Ballistic Beer which has been saved from liquidation by a $850K injection from investment group, Catchment Brewing Company and other investors, who now hold a majority stake in the business.

Ballistic Brewing had gone into voluntary administration in January which saw Mighty Craft write down their value on the balance sheet form $2.4m to $400K.