Chinese drink to Broo’s success but Aussie punters are yet to be convinced
Health & Biotech
Health & Biotech
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True blue beer-maker Broo has heralded its Chinese launch as a success — but it’s still working on its local appeal.
The company’s Australian-branded beer has hit the shelves in more than 20 cities across China ahead of summer trading as part of a $120 million distribution deal with Beijing Jihua.
Now, it is looking closer to home and working to expand beyond its initial Queensland market and says it will go state by state with liquor retail banner groups for roll out and store presence.
The stock (ASX:BEE) closed up 17 per cent at 16c on Monday.
That’s less than half its November peak of 39c when the company first announced its China deal.
In the last quarter, the company made $954,000 in customer receipts – a total of $2.5 million for year-to-date.
That leaves $872,000 in the bank, with $1.62 million in estimated outflows for the coming period including $20,000 on marketing.
Broo is also planning to build the “world’s greenest brewery” combining manufacturing, environmental technology and tourism at a site in Ballarat, Victoria.
“It has taken considerable time to finalise and compile all facets of this development including consultants’ reports as was expected with a project of this magnitude. These reports alongside project costings are currently being tabled for the development of the brewery and production facility.”
The 15-hectare site in Ballarat was first acquired back in February 2017– as a means for the company to brew its own beer and beverages with planned production capability as much as 480 million bottles per year.
At its initial announcement BEE’s indicative quote for the plant and packaging services was in the ballpark of $95 million – but it said further updates would be provided in due course.