Australia & China: Australian beer maker Broo signs China distribution deal
Shares in Aussie beer maker Broo have soared to their highest in a year on the back of a Chinese distribution deal, The Sydney Morning Herald reported on November 27.
Broo shares jumped more than 30 per cent on November 27 after the Victorian brewer said Jihua had agreed to pay for 1.5 billion litres of Broo Premium Lager over the next seven years.
Broo forecasts A$120 million in revenue from the deal but won't start to receive the cash until 2020.
Nonetheless, its shares were up 30.5 per cent at 38.5 cents by 1410 AEDT.
With Jihua set to market and distribute to supermarkets, retail chains and the hospitality industry, Broo founder and chief executive Kent Grogan said his beer was set to become a major brand in China over the coming years.
"I am delighted to have reached agreement with such a high-calibre Chinese distribution partner," Mr Grogan said.
Broo's Mildura brewery has been operating at full capacity since early October.
The brewery will focus on production of kegs and bottle products of Broo Premium Lager, Australia Draught, Kakadu and Mildura Brewery brands.
Back
E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .
