Western Australia-based Kommunity Brew says its acquisition of Melbourne’s Cool Cool Beverage Company (CCBC) immediately opens export opportunities for the functional beverage company.
The acquisition adds Sips Sparkling and Liberty Kombucha brands to the Kommunity Brew portfolio and follows its successful equity crowd funding capital raise early this year.
This is Kommunity Brew’s second acquisition, in 2022 it purchased the Cold Matter Cold Brew brand from Black Matter Coffee Roasters.
Kommunity Brew CEO Mason Bagios said factors driving the CCBC purchase included CCBC’s Melbourne HQ, distribution network, including existing relationships with Coles, Woolworths and Amazon, and access to the sparkling water sector.
The acquisition also opens up immediate export opportunities for Kommunity Brew via Sips Sparkling’s shelf-stable product range.
“The integration of CCBC into our business is a major milestone in the evolution of Kommunity Brew, putting us in a strong position to increase our profile in the Eastern States, while improving operating margins from a Melbourne manufacturing base,” Bagios said.
Bagios said Victoria has long been an Australian powerhouse, with the 2022 Population Statement forecasting Melbourne will become Australia’ largest city in 2031-32 with just over 6 million people.
“The Sips Sparkling and Liberty Kombucha brands and values are very much aligned with those of Kommunity Brew, represented in their quality, local manufacturing, unique and interesting recipes, and smooth processes,” Bagios said.
CCBC’s humble beginnings also resonated with the Kommunity Brew team, which began in a backyard shed.
“Beverage brands are exceptionally difficult to build, but their creators often demonstrate outstanding innovation.
“CCBC has developed innovative products that have all had a bedrock of creativity. We love the bold positioning of the Sips Sparkling and Liberty Kombucha brands and because we relate to the difficulty of brand-building we see value where an institutional investor might see risk,” Bagios said.
