DB Breweries is taking advantage of the slumping market to add to its hospitality portfolio, buying up three popular bars and is in talks to build a third.

DB, in conjunction with its hospitality joint venture Barworks, has purchased Takapuna’s Copper Room, Christchurch’s Soho bar, and is in discussions to purchase Degree Bar in Auckland’s Viaduct.

DB has purchased a 75% stake in Hurstmere Pubs, owner of the Copper Room, with the remaining 25% stake held by Barworks, all up costing $268,100.

Riccarton Hospitality, owner of Soho, has a similar ownership split and was purchased for $1,085,300.

Gaults on Quay, now Degree bar, will be 100% owned by Barworks with a purchase value of $1,680,000.

Barworks is a partnership between DB and JAG Hospitality, which runs the operations end, and the partnership is responsible for a variety of mid-to-high end pubs.

DB owns 60% stake in Barworks, and JAG Hospitality 40%, which is run by serial-bar entrepreneurs Andrew Clapham, John Hellebrekers and Gavin Cowell.

Additionally, Barworks has also entered into a joint venture with Keppel Brown to form a new company, Market St Holdings to create an as yet unnamed bar venture out in Auckland’s Botany.

This is still in the planning stages, although the venture has already leased a site.

Barworks will inject $366,000 into the new company for a 75% stake, while the Keppel Brown Trust will inject approximately $122,025 for its 25% stake.

Historically, Barworks and DB have worked to produce DB or Monteith's bars, to boost brand exposure beyond simple supply agreements.

DB’s general manager of acquisitions, Andrew Campbell, says that the company doesn’t plan to make any changes to the direction or operations of the businesses and is simply building up its portfolio while the market is soft.

The owners of the Copper Room had wanted to leave the business, and were being supplied by DB anyhow – it was a natural fit.

The plan is to expand DB’s already successful gastro-pub model, a measure that has proven popular as the traditional drink till you drop bogan pub goes out of fashion.

“It’s about providing a nice relaxing environment, a relaxed atmosphere and a menu that’s not fine dining, but that customers can casually enjoy,” he says.

The company, which sold Liquorland to Foodstuffs late last year, hasn’t been shy to pursue purchases that fit its business model, even as nationwide belt-tightening sees more consumers stay at home, and frequent bar and restaurant closures.

“The market’s still pretty strong for the right kind of bars, and the gastro-pub model is doing a lot better than those that focus exclusively on liquor.”