Blue Sky Drinks merges NED and Grainshaker with Gravity Drinks to create new beverage powerhouse

Sydney-based Blue Sky Drinks Co. is making a major play for a share of the Australian beverage market by scooping up the assets of Top Shelf International Holdings and merging it with Gravity Drinks Co.

Blue Sky Drinks says the merger brings Gravity’s popular Over Sugar? ready-to-drink (RTD) brand and Top Shelf’s Australian spirit brands NED Australian Whisky, Act of Treason and Grainshaker into the same stable as the newly merged entity goes “toe-to-toe” against the world’s best beverage brands.

Gravity Drinks, a fast-growing better-for-you RTD company, was founded in 2022 by Mick Spencer, Liam Battye and a group of professional athletes.

The company’s Over Sugar? drink is among Australia’s most recognised challenger labels in the RTD category, backed by a loyal customer base and a solid national distribution network that includes majors such as Endeavour Group and Coles Liquor.

The deal for NED Australian Whisky and Grainshaker has been struck with administrators to Top Shelf International Holdings, which collapsed last month with debts of more than $40 million.

Under the merged structure, Mick Spencer will assume the role of executive chair of Blue Sky Drinks while Liam Battye will become head of operations.

Gravity CEO Greg Mitchell will become CFO/COO of Blue Sky Drinks and David Ward will become general manager of sales and marketing.

“This is day one of something big,” says Spencer, co-founder of Blue Sky Drinks Co.

“I’m incredibly proud of what Gravity has achieved in just three years, and even more excited for what’s ahead.

“By combining Gravity with some of Australia’s strongest spirits and RTD brands, we’re building a new kind of drinks company - one that’s proudly Australian owned, Australian made and built for a future under a blue sky.

“We have stronger backing, bigger ambitions and a renewed focus on what matters most: our customers, our suppliers, and keeping the energy alive behind these incredible brands.”

Joining the Blue Sky board is Ray Noble, a 30-year drinks industry veteran who previously served as managing director of Sazerac Australia and held senior leadership roles at Beam Suntory.

“This is a fantastic result for the Aussie drinks industry,” says Noble.

“The Blue Sky line-up of NED, Grainshaker, Act of Treason, Golden Bickie and Gravity all blend local craftsmanship with fresh, modern energy ready to be unlocked.

“The new team has the know-how, passion and entrepreneurial spirit to take these brands to the next level, and I’m stoked to be part of that journey.”

The merged businesses will continue production in partnership with IDL, while leveraging a national distribution network of more than 5,000 independent liquor retailers and majors Endeavour Group and Coles Liquor.