Aussie brewer collapses after owners tried to keep it afloat

An Australian beer and spirits maker has joined a growing list of businesses closing their doors due to the cost of living crisis.

Mighty Kraft, which owns 33% of Peter Bear, has collapsed and gone into administration after struggling to get out of its financial troubles.

on her websiteMighty Craft is one of Australia’s leading and fastest growing premium craft beverage companies.

The company has been listed on the ASX for just five years and was at one point valued at $1.8 million.

Mighty Craft was desperately trying to survive by seeking mergers, selling assets and brands, and shrinking its board and management.

Ankura, a bankruptcy firm, has been appointed as administrator of Mighty Craft.

Investors were told that officials were conducting an “urgent assessment” of the company’s situation, along with management and the board.

The majority of Mighty Craft’s revenue comes from its 33 percent ownership in Better Beer.

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Comedians Jack Steele and Matt Ford of The Inspired Unemployed own a 46 percent stake in Better Beer.

Co-founder Nick Koger owns 18 percent of Better Beer, which launched in October 2021.

Mr. Cogger said the Mighty Craft management actions were just “business as usual” for Peter Bear.

“At some point in the future, someone or a company will file a DOCA (Document of Corporate Arrangement) and we will likely have a new shareholder on our register,” Mr Cogger said in a statement to Business News Australia.

“We look forward to officially separating from Mighty Craft in the coming months.”

The accounts reveal that Better Beer has performed strongly, despite the slump in the craft beer market.

In the six months ended Dec. 31, sales rose 32 percent to $26.1 million.

It now appears that the proposed merger between Mighty Craft and Better Beer will not happen.

The company announced in a statement to the Australian Stock Exchange that “the company has undergone a sale and restructuring program to reduce the company’s debt.”

The key element of this programme was the proposed merger between Better Beer Holdings Pty Ltd and MCL (Mighty Craft), an arrangement that required the support of MCL’s senior lenders and Better Beer’s shareholders.

Mighty Craft’s fall into administration is the latest shock to the craft beer industry.

Late last month, Melbourne-based brewpub Alchemy Brewing announced its closure.

Lion, one of the world’s largest drinks companies, will close its malt shovel brewery in Sydney’s Camperdown area by the end of August after more than three decades in operation.

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