Sharechat Logo

Lion expands boutique footprint with Dunedin-based Emerson's acquisition

Tuesday 6th November 2012

Text too small?

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 said in a statement. Emerson's brewery can produce up to 1 million litres per year, according to its website.

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," NZ managing director Rory Glass said.

The purchase comes just four months after Lion bought out the 64 percent of Australian boutique brewer Little World Beverages in a A$256 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, the company said.

Lion's operating income fell 7.5 percent to A$440 million in the three months ended Sept. 30, with a 4.8 percent decline in sales to A$1.73 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 US$8.7 billion craft beer market in the United States and grab 0.02 percent of the market share.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers
Strong tourism, low rates keep lid on NZ current account deficit
Refining NZ margins jump to 18-month high
Goodman opts for underwritten $150m placement to raise capital
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake

IRG See IRG research reports