Better Beer CEO Nick Cogger has told The Shout that today’s announcement by Mighty Craft that it has appointed voluntary administrators will have “no impact on Better Beer”.
Mighty Craft said today that it has been undergoing a divestment and restructuring program to reduce the company’s debt and that fundamental to the program was its proposed merger with Better Beer.
Mighty Craft stated today that its and Better Beer were unable to reach an agreement that was acceptable to all parties and so the directors “formed the opinion that the Company should be placed into voluntary administration to evaluate options for the Company to continue as a going concern”.
Following the announcement, The Shout contacted Better Beer CEO, Nick Cogger who said: “This has no impact on Better Beer. We will continue to trade as usual & work with the administrator to find a new shareholder to replace out Mighty Craft.
“Given Mighty Craft is a minority holder, we are pretty insulated throughout this process. We do sell beer to Mighty Craft and they then sell it to our customers, however the Administrator is running the business as a going concern.”
In April this year Better Beer hit $100m in revenue after just 30 months of operating and Cogger said today: “Better Beer has been trading exceptional well considering the market out there is pretty tough. Our team is currently planning a massive summer with some huge activations and even Bigger Day for it Day.”
In terms of what happens now, Cogger told The Shout: “There will be a roughly two-month period where the Administrator operates Mighty Craft in hope that they can get a company or individual to put forward a DOCA.
“So, we will hang tight during that process and more than likely welcome a new 25 per cent shareholder.”
