Craft beverage ‘accelerator’ Mighty Craft (ASX: MCL) has been getting Aussies tipsy on beer, spirits and now, whiskey.
The Company has today announced the appointment of two guys to their ‘Whiskey Acceleration Team’ (a trivia night team name winner for sure) whose job it is to get you buzzed.
Chris Malcolm and George Campbell are both “seasoned operators in the whiskey industry” with a combined 60 years of industry experience.
Mighty Craft invests in small craft beverage producers and nurtures them with growth capital, scalable industry solutions and brand awareness. And their acquisition strategy is working. With brands like Brogan’s Way, Torquay Beverage Company, Seven Seasons and Jetty Road Brewery under their banner, Mighty Craft is building an impressive portfolio.
The Company experienced record growth this last quarter with a 277% increase in revenue and 360% increase in receipts.
Whiskey is the largest spirit category in Australia and has a tendency to attract higher profit margins than other spirits. The global whiskey market was valued at over USD $57 billion in 2018 with a projected annual growth rate of 6.4%. This growth is largely driven by factors such as increases in disposable income, lifestyle changes and millennial consumer preferences.
Mighty Craft also owns and operates two venues in NSW and Victoria that serve as a hub for people to experience and celebrate craft beverages. The venues are geared towards millennials with the integration Upstreet, a fractional share investing platform.
Although Mighty Craft finished the March quarter with net cash outflows of $1.4m but maintains a healthy cash balance with $11.7m at hand. Still in the process of recovering from COVID-enforced revenue losses, the Company is confident robust beer growth rates will be maintained where they anticipate reaching breakeven by H2 FY22.