Australian beverage company Lion has acquired The Fermentum Group, the parent company of Stone & Wood Brewing, according to Australian Brews News.
While financial specifics of the takeover were not disclosed, the 100% acquisition is estimated to be worth $500 million, according to the Australian Financial Review.
“After an extensive strategic review exploring options to set us up for future growth, we decided to test the waters on whether now was the right time for the founding families to find a custodian to grow Fermentum’s legacy, its people, its culture and its brands, and continue to drive the business forward whilst staying true to its purpose,” Fermentum co-founder and chairman Jamie Cook said in a press release.
“We only looked for a custodian who would be committed to building the brewery and to support our work in the community. Not only did Lion welcome these ideas with enthusiasm, they demonstrated they have similar values and a focus on environmental and social governance aligned to our ‘force for good’ approach,” he continued. “Lion’s custodianship of Little Creatures, Four Pillars and New Belgium demonstrates they in fact learn from new businesses, and grow their impact and reach.”
In 2019, Lion acquired New Belgium Brewing Company, giving the Kirin-owned company a foothold in the U.S. beer market with one of the most recognizable craft breweries in the world.
Fermentum was founded in 2008 by Cook, Brad Rogers, and Ross Jurisich, and within a decade grew to claim 1% of Australia’s $4 billion beer market, according to the release. Along with its flagship brewery Stone & Wood, Fermentum owns Two Birds Brewing, Fixation Brewing Co., Little Dragon ginger beer, and Sunly hard seltzer.
According to the Stone & Wood website, the brewery was founded by the trio “after many years in the brewing industry, to get away from the world of big beer.” Asked by Brews News whether consumers would have negative feelings about the brewery no longer being independent, Cook said the company’s mission is about more than independence.
“It’s about other things that we built our business on, that conscious business model of truly engaging our consumers and our community, providing support for the community,” he told Brews News.
“The IBA are obviously saddened by the loss of Stone and Wood from our stable of indie brewers and of course as valued members of our association,” Peter Philip, chair of Australia’s Independent Brewers Association (IBA), said in a blog post. “Ultimately, the reality is that business owners need to make decisions every day on what is best for them, their shareholders and their staff.
“Moving forward, this transaction underlines the strength and growing importance of our industry. The growth of indie breweries is testament to the fact that consumer demand is driving growth so although this might appear to be a loss, it simply paves the way for others to grow to fill the void and to take advantage of the trend,” he continued.
The acquisition is still awaiting approval by the Australian Competition and Consumer Commission (ACCC). Last year, Asahi Group Holdings had to divest five beer and cider brands before the ACCC would grant approval of Asahi’s acquisition of Carlton & United Breweries (CUB).