Casella Family Brands takes over Better Beer distribution from Mighty Craft

Regional NSW-based drinks group Casella Family Brands (CFB) has stepped in as the distributor for Australia's second-largest independently owned beer brand Better Beer, after its former distribution partner and substantial shareholder Mighty Craft fell into administration earlier this year. 

Casella was already manufacturing Better Beer from its brewery in Yenda, NSW, and had been in negotiations to strengthen its ties since Mighty Craft went under. 

Pure Asset Management, now in the process of taking over embattled craft brewer Mighty Craft, provided $3.75 million to administrators to keep certain aspects of the business alive - primarily its subsidiary Mighty Craft Operations which had been the exclusive distributor of Better Beer since December 2021.

Under a solutions agreement between Mighty Craft and Better Beer, in which the former has a 25 per cent shareholding, the distributor was entitled to a commission on each unit sold. But administrators to Mighty Craft found the agreement was not profitable and had no realisable value.

However, Pure subsidised the operation "so as to not prejudice that value of Mighty Craft’s interest in Better Beer which may have substantially declined if Better Beer was unable to distribute product for a period of time".

Administrators determined the estimated recovery value (ERV) of Mighty Craft's shareholding in Better to be unknown, but in May the brand was valued at approximately $80 million, of which $20 million would belong to Mighty Craft at that value.

Casella Family Brands, also known for the Yellow Tail and Peter Lehmann wines, Ampersand Projects and other consumer-facing brands, announced this week that it would  distribute the Better Beer Company’s brand portfolio in Australia, effective immediately.

"This is a fantastic opportunity for our business as we continue to strengthen our portfolio of category-leading brands across wine, beer, spirits, and RTD (ready-to-drink)," says Casella Family Brands managing director John Casella.

"We look forward to working with the Better Beer team to continue growing the brand’s distribution footprint in both the on and off trade, building on the great success they have achieved since launch in 2021."

Under the new agreement, the Better Beer Company will continue to own and manage the brand, dedicating its efforts to strengthening its connection with consumers. Meanwhile, CFB will focus on expanding the brand’s presence across both on-trade and off-trade channels to enhance distribution and reach.

"Better Beer has established a loyal consumer base and strong distribution footprint. This new model allows us to focus our efforts on ensuring the brand connects with consumers," says Better Beer Company CEO Nick Cogger.

"At the same time, Casella Family Brands’ capabilities will support the brand in realising its full potential in the domestic market. Bringing together the second largest independently owned Aussie beer brand and Australia’s largest family-owned drinks company is an exciting prospect for us all."

The story of Better Beer began when two ex-tradies from Sydney’s South Coast, Matt Ford and Jack Steele, met Cogger, a health-conscious drink enthusiast and publican from Torquay.

Together, they wanted to create great-tasting beer for their mates that was crisp and refreshing but offered a healthier alternative.

They teamed up to create the Better Beer Company and made their dream a reality, crafting a refreshing zero-carb, zero-sugar, low-calorie beer. The range has since expanded and now includes the OG Zero Carb, Ginger Beer, Middy, Arvo Ale, and Zero Alc.

CFB head of sales Chris Blockley says the group is committed to constantly evolving its product range to provide "conscious consumption" and "better-for-you" alternatives, so that it caters to all consumers.

"Bringing the Better Beer range into the fold considerably strengthens our offering in this space," Blockley says.

"The addition of Better Beer to the CFB portfolio supports our ambition to offer our customers a repertoire of quality Australian brands and help drive category growth."