Beer News - Micro-brewer Empire Beer pays $3.5m for Perth pub
Micro-brewer Empire Beer pays $3.5m for Perth pub, Elizabeth Gosch, 21 May 2007, The Australian
"WESTERN Australia's newest listed micro-brewer, Empire Beer Group, has bought a metropolitan Perth pub to try to win over city drinkers to its craft beer brand Colonial Brewing Company.
Empire, based in the wine-flooded Margaret River in WA's southwest, has purchased the $3.5 million Royal Bar & Brasserie in East Perth.
Managing director Phil Gallagher -- who boasts a beer- and football-filled resume that would be the envy of most men -- said the acquisition was the beginning of the company's dual growth strategy.
Empire aims to expand its Colonial Brewing Company by developing new micro-brewery sites to add to the Margaret River brewhouse as well as buying stand-alone food and beverage pubs and hotels.
"The acquisition of a profitable stand-alone hotel will allow Empire the opportunity to focus on on-premises sales, maximise its expertise and grow brand presence," Mr Gallagher said. "The Royal Bar & Brasserie is a high-profile, high-traffic tourist location and a leading Perth food and beverage venue, with significant potential for growth in both the local and tourism markets. It will provide the company with significant distribution and volume for its flagship Colonial Brewing Company brands."
The Royal will be cash-flow positive immediately and marks the company's first purchase for the year.
"We're already investigating a number of metropolitan and regional opportunities both in WA and interstate," Mr Gallagher said.
As well as building a portfolio of stand-alone hotels, Empire is planning a network of micro-breweries across the country.
Mr Gallagher is confident that craft beers are the way to go in Australia's diverse alcohol market.
"I'm a real believer in it, I think that's the future of beer," he said. "In the United States, premium beers account for 5 per cent of beer purchased, and in Australia more and more people are drinking imported premium beers."
Empire's shares closed at 21.5c last week, down 12.5c from their ASX debut in January."
"WESTERN Australia's newest listed micro-brewer, Empire Beer Group, has bought a metropolitan Perth pub to try to win over city drinkers to its craft beer brand Colonial Brewing Company.
Empire, based in the wine-flooded Margaret River in WA's southwest, has purchased the $3.5 million Royal Bar & Brasserie in East Perth.
Managing director Phil Gallagher -- who boasts a beer- and football-filled resume that would be the envy of most men -- said the acquisition was the beginning of the company's dual growth strategy.
Empire aims to expand its Colonial Brewing Company by developing new micro-brewery sites to add to the Margaret River brewhouse as well as buying stand-alone food and beverage pubs and hotels.
"The acquisition of a profitable stand-alone hotel will allow Empire the opportunity to focus on on-premises sales, maximise its expertise and grow brand presence," Mr Gallagher said. "The Royal Bar & Brasserie is a high-profile, high-traffic tourist location and a leading Perth food and beverage venue, with significant potential for growth in both the local and tourism markets. It will provide the company with significant distribution and volume for its flagship Colonial Brewing Company brands."
The Royal will be cash-flow positive immediately and marks the company's first purchase for the year.
"We're already investigating a number of metropolitan and regional opportunities both in WA and interstate," Mr Gallagher said.
As well as building a portfolio of stand-alone hotels, Empire is planning a network of micro-breweries across the country.
Mr Gallagher is confident that craft beers are the way to go in Australia's diverse alcohol market.
"I'm a real believer in it, I think that's the future of beer," he said. "In the United States, premium beers account for 5 per cent of beer purchased, and in Australia more and more people are drinking imported premium beers."
Empire's shares closed at 21.5c last week, down 12.5c from their ASX debut in January."
posted by Stewart Went at
7:27 pm
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