Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
Lion, the Australasian brewer owned by Japanese beverages giant Kirin, has expanded its footprint in boutique ales by buying Dunedin-based Emerson's Brewing Co for an undisclosed sum.
The 20-year-old Emerson's brewery will operate as a standalone unit within Lion and retain its existing Dunedin brewery, the company says in a statement. Emerson's can produce up to one million litres per year, its website says.
Emerson's "complements Lion's existing beer portfolio well and allows us to offer our customers an enhanced proposition with a leading portfolio of brands across the specialty, boutique and popular craft market", Lion NZ managing director Rory Glass says.
The purchase comes just four months after Lion bought out the 64% of Australian boutique brewer Little World Beverages in a $A256 million deal that saw the Fremantle-based company delisted from the ASX.
The Emerson's range of beer joins Lion's local line-up of brands including Speight's, Lion, Steinlager and Mac's.
Emerson's founder Richard Emerson, general manager Bob King and brewing manager Chris O'Leary will run the brewery's operation and all other roles will remain unchanged, Lion says.
Lion's operating income fell 7.5% to $A440 million in the three months ended September 30, with a 4.8% decline in sales to $A1.73 billion on falling revenue from its soft drink businesses.
The acquisition comes ahead of the local listing of boutique brewer Moa Group, which last week topped out its $16 million target from its initial public offering.
Moa needs the money to build a new $6.1 million brewing facility and cover the $1.6 million cost of the float as it looks to break into the $US8.7 billion craft beer market in the United States and grab 0.02% of the market share.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- MasterCard, Visa pressure sees PayPal halt servicing payments for Mega
- 'We've never seen a competitor in any category behave in this manner' — MYOB on Xero man's outburst
- Editor's Insight: Solid Energy's lessons in putting taxpayers at risk
- Deal struck between warring leaky litigators
- Phillips Fox merges with DLA Piper to become local unit of Anglo-American law firm