Catchment Brewing have become majority owners of Ballistic Beer in a deal that will see the latter leave voluntary administration and continue operation. Ballistic founder David Kitchen is to stay on as a shareholder and strategic advisor.
Today's announcement comes after Ballistic entered voluntary administration in January and represents Brisbane-based Catchment's second investment in a Queensland brewery after acquiring Fortitude and sibling brand Noisy Minor in the middle of 2022. An interstate hospitality group has also invested in Ballistic.
In a media statement following today's meeting of creditors, David said: "We are confident that with the capital injections from our partners and strategic input to the plans we have been working on will see Ballistic remain a large, relevant and popular craft beer brand in the Australian craft beer industry."
Under the new arrangement, Catchment Brewing Co will take a majority share in the business with Catchment Group CEO Matt Newberry assuming the group CEO role and taking a seat on the Ballistic board. New investors will manage the brand, venue revitalisation and marketing, wholesale and distribution across NSW, ACT and Victoria.
Matt said in the statement: "In conjunction with the aggressive growth plans of the Catchment, Fortitude and Noisy Minor brands, we believe Ballistic will add value to our portfolio and offer a truly independent QLD craft beer company with a terrific suite of brands and venues moving forward.
"We will be retaining as many of the Ballistic team and breweries as we can. Our aim is to preserve QLD jobs and keeping the Ballistic brand alive is important for the Ballistic founders and shareholders as well as the QLD and national craft beer industry."
Ballistic general manager Lauren Jack added: "The combined skills of all parties will ensure the successful management, branding, marketing, logistics, sales and distribution to accelerate a pathway to profitability.
"Ballistic is working hard to retain as many jobs as possible for its staff, and with the support of its suppliers and new investors, looks forward to a bright future in Queensland and throughout Australia. We are confident that with the new firm financial footing and strategic plans that we will be able to fully recommence business and retain its position as one of the leading brands in Queensland."
Ballistic went into voluntary administration in January, with the brewery appointing the accounting firm PKF to oversee operations following a rapid rise. The brewing company launched in 2017, later opening venues in Brisbane's West End and Springfield, while also taking over Bargara Brewery in Bundaberg and The Whitsunday Brewing Company in March 2021.
The news comes amid a turbulent time for the industry, with interest rate rises and sustained increases in the cost of running a brewery continuing to impact brewing companies. Tribe Breweries went into voluntary administration at the end of last month, while Good Drinks' plan to buy Stomping Ground was called off with both businesses citing changed market conditions as leading to their decision.
We'll follow up with more detail on future plans once we've spoken to those involved.
Media Statement – March 10, 2023
Ballistic Brewery Saved From Liquidation Ballistic Beer Co, one of the top craft beer brands in Queensland, has avoided liquidation by a consortium of new investors, including Catchment Brewing and an interstate hospitality group. Existing shareholders also came to the table to secure the future of the brand. The company is extremely grateful to its staff, who continued to work diligently, and the broader community, for their continued support during what has been a difficult time for Ballistic, and the wider craft brewing industry.
"We are confident that with the capital injections from our partners and strategic input to the plans we have been working on will see Ballistic remain a large, relevant and popular craft beer brand in the Australian Craft beer Industry," said David Kitchen, Founder of Ballistic.
The Catchment Brewing Co will take a majority share in the business under this arrangement, with Catchment Group CEO Matt Newberry assuming the group CEO role and taking a seat on the Ballistic board. Catchment has a shared independent brewery ethos and views the Ballistic brand and team as a major asset. David Kitchen will remain as a shareholder and Strategic Advisor the Board.
New investors will manage the brand, venue revitalisation and marketing, wholesale and distribution across NSW, ACT & Victoria, adding to Ballistics’ national opportunities.
"In conjunction with the aggressive growth plans of the Catchment, Fortitude and Noisy Minor brands, we believe Ballistic will add value to our portfolio and offer a truly independent QLD craft beer company with a terrific suite of brands and venues moving forward. We will be retaining as many of the Ballistic team and breweries as we can. Our aim is to preserve QLD jobs and keeping the Ballistic brand alive is important for the Ballistic founders and shareholders as well as the QLD & National craft beer industry," said Catchment CEO Matt Newberry.
Ballistic is thankful for the strong community backing and support for the development and distribution of the Ballistic Beer Co products, which have achieved significant state and national growth over the past five years.
"The combined skills of all parties will ensure the successful management, branding, marketing, logistics, sales and distribution to accelerate a pathway to profitability," said Ballistic General Manager Lauren Jack.
Ballistic is working hard to retain as many jobs as possible for its staff, and with the support of its suppliers and new investors, looks forward to a bright future in Queensland and throughout Australia. We are confident that with the new firm financial footing and strategic plans that we will be able to fully recommence business and retain its position as one of the leading brands in Queensland.
