One of Australia’s best-known craft breweries, Feral Brewing, is up for sale.
The sale comes as current owner Coca-Cola Europacific Partners (CCEP) moves to exit beer in Australia.
The move was not wholly unexpected: CCEP, recently formed as an acquisition of Coca-Cola Amatil by Coca-Cola European Partners, had recently conducted a ‘strategic review’ to streamline their product ranges.
In CCEP’s interim H1 2021 results, the beverage firm had identified that their spirits & RTDs in the Australian market were outperforming beer and cider products this year.
The move is also likely to cause further movements in Australia’s booming market for brewery acquisitions by Japanese beverage giants, with notable recent examples including Kirin subsidiary Lion’s purchase of Stone & Wood and Asahi’s purchase of CUB.
In an official statement, CCEP’s regional Vice President Peter West highlighted that sticking in the beer business “would come at the expense of focusing our efforts, teams and innovation on our core Spirits, RTD and NARTD portfolios, where we have a much greater ability to drive category growth”.
“A move away from beer and apple cider will allow for greater focus for our teams to execute our exciting growth plans in Spirits, RTD and NARTD and enable the future partners of these beer and apple cider brands to continue to accelerate their performance.”
Feral had recently closed their brewpub in Swan Valley, which had been in operation for 19 years, and announced their operations were heading to a facility in Bassendean, an outer suburb of Perth.
Feral, which started operating in Western Australia in 2002, had established a strong track record for both quality and consistency in the domestic market.
Dan Murphy’s, an Australian liquor retailer, had once labelled Feral as having a “strong claim” to being one of Australia’s best craft breweries and had awarded the brewery’s then-flagship Hop Hog India Pale Ale the top beer of 2013.
Feral Brewing was bought by CCEP’s predecessor, Coca-Cola Amatil, in 2017. According to the Australian Financial Review, Melbourne investment bank Kidder Williams Limited will oversee the sale for CCEP.
While it remains to be seen who will acquire the brewery and brand, Japanese firms’ escalating track record of involvement in Australia’s beer market may signal the likely array of ultimate buyers.
