Top Shelf International, owner of brands such as Act of Treason and NED Whiskey, has signed a binding term sheet regarding the sale of its Campbellfield production facility to IDL, an end-to-end beverage solutions provider and wine brand owner.

Valued at $8 million, the sale includes all operational and production assets currently at the site, such as a brewhouse, distillery, canning and bottling lines, and even a small amount of excess NED Australian Whisky inventory. It does not however include Top Shelf’s whisky maturation and warehouse facility located in neighbouring suburb, Somerton.

Following the completion of the sale, Top Shelf will continue to produce NED Whisky at the Campbellfield site via a co-packaging arrangement with IDL.

This morning, a Top Shelf spokesperson told shareholders that “proceeds received from the sale of the operational and production assets and the excess bulk whisky will be applied towards transaction costs and reducing the Company’s debts, including the reduction of the Company’s outstanding ATO excise liability. Concurrently, Top Shelf intends to enter into a co-packing arrangement with IDL for the production of its branded products following the completion of the sale.”

The Campbellfield sale follows on from an unsuccessful $5 million sale and leaseback deal on its Eden Lassie agave farm, which was announced in April and forfeited in October after “certain conditions precedent were not satisfied, including the security release.”

Both sales reflect the ASX-listed company’s focus on managing debts and securing working capital following a net loss after tax of $48.3 million in Financial Year 2023. This is in spite of strong recent momentum which saw Act of Treason recognised by The Spirits Business as the sixth most innovative global launch of 2024 after sales “exceeded initial expectations.”

Last financial year, Top Shelf International invested $6 million into its Australian Agave program, leading to a 36% growth in volume sold in Endeavour Group stores since attaining national ranging in July.

NED Whiskey also experienced a notable growth of 8% over the last six months in Coles. Top Shelf accredits this to innovations such as the recently launched Golden Bickie presented by NED flavoured whisky liqueur - which is says has successfully been “capturing the flavoured whisky trend” - and to NED's 12% RTD range.

Collectively, Top Shelf registered an underlying profit growth of 51% in FY24. Despite this, Top Shelf announced in December that it had enlisted EY's Melbourne Mergers and Acquisitions team for advice regarding the sale of some or all of its assets.

The buyer of the Campbellfield production facility, IDL, is a family-owned and operated full turn-key beverage solutions provider based in Moorabool Valley, Geelong. IDL also owns and operates three of its own brands, including RTD and cider brand Wildah, budget wine brand Arcadian, and wine brand and cellar door Idyll. Mid last year, IDL was named Australia’s Best Beverage Manufacturing Solutions Company by Acquisition International.

IDL’s purchase of Top Shelf’s Campbellfield facility remains conditional on the negotiation of long-form documentation and on other customary conditions precedent. Additionally, the agreed sum of $8 million may be adjusted as a result of certain historical entitlements of transferring employees.

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