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Let’s TalkKommunity Brew Expands Eastward Through the Acquisition of Cool Cool Beverage Company
Kommunity Brew, based in Lathlain, Western Australia, acquired Cool Cool Beverage Company (CCBC), based in Melbourne, Australia, on August 1, 2023. Kommunity Brew produces organic kombucha, probiotic health-boosting shots, and sparkling probiotic water, while CCBC makes naturally-flavored sparkling water and raw, fresh kombucha. Kommunity Brew made the acquisition to improve its operating margins through CCBC’s Melbourne manufacturing facility and distribution network, including existing relationships with Coles, Woolworths, and Amazon, and to gain access to the sparkling water sector.
Transaction Summary
Our Take on the Acquisition
Kommunity Brew (acquirer) acquired Cool Cool Beverage Company (target) to expand its presence in eastern Australia. Kommunity Brew’s head office and manufacturing unit is based in Lathlain, Western Australia, 2,125 miles from Cool Cool Beverage’s facility in Melbourne. Australia’s eastern coast is more densely populated, and Melbourne is an ideal location to service customers in the adjoining states. There is a significant overlap between each company’s products, so getting a second production facility will also increase Kommunity Brew’s margins by lowering its shipping costs.
The Facts of the Acquisition
- Target: Cool Cool Beverage Company is a manufacturer and distributor of healthy beverages based in Melbourne, Australia. It offers raw and fresh kombucha and naturally flavored sparkling water, free of calories, sugar, and sweeteners.
- Acquirer: Kommunity Brew produces and distributes organic kombucha, sparkling probiotic water, and probiotic health shots. It is based in Lathlain, Western Australia.
The Transaction
| Date: | August 1, 2023 |
| Price: | Undisclosed |
| Purpose: | To expand geographically into eastern Australia |
| Acquirer’s Statement: | Mason Bagios, CEO of Kommunity Brew – “The integration of Cool Cool Beverage Company 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.” |
Target/Seller: Cool Cool Beverage Company
Company Information
| Target: | Cool Cool Beverage Company |
| Founded: | 2019 |
| Industry: | Beverage Manufacturing |
| Type: | Private |
| Employees: | Up to 25 (Unconfirmed source: ZoomInfo) |
| Locations: | Head Office: 15 Sussex Road, Caulfield South, Melbourne, Victoria, Australia (2,125 miles from the acquirer) |
Product Information
| Products: | Liberty Kombucha – A drink produced by fermenting sweet tea with a culture of yeast and bacteria. Sips Sparkling Water – A sparkling water in a variety of natural flavors that contains no sugar, sweeteners, and calories. |
| Market Reach: | Australia |
Financial Information
| Revenue: | Up to USD $5.0 million (Unconfirmed source: ZoomInfo) |
| Revenue per Employee: | Up to USD $200,000 (i.e., USD $5.0 million / 25 employees = USD $200,000 – estimated based on the number of employees and revenue from ZoomInfo) |
Did You Know?
Probiotics have multiple intestinal health benefits and promote immunity. Several recent studies have shown that probiotic beverages boost mental health because gut health is linked to peoples’ moods and mental well-being. According to Allied Market Research, the global probiotic drinks market had a value of $11,047.40 million in 2020 and is projected to reach $23,405.70 million by 2031, growing at a CAGR of 6.6% from 2022 to 2031.
Interestingly, the demand for probiotic drinks has increased since the COVID-19 pandemic because consumers are focusing more on preventative health, which has had a significant positive impact on the probiotics industry and is expected to fuel the global revenue growth of the probiotics market. Key players in the probiotics market are responding to consumer demand by introducing high-quality products and establishing partnerships with well-known local nutraceutical brands, which is expected to drive growth during the probiotic drinks market forecast period.
Target/Seller Overview: Cool Cool Beverage Company
Cool Cool Beverage Company manufactures healthy beverages. It operates two brands, Liberty Kombucha, and Sips Sparkling, and sells kombucha tea, probiotic products, and seltzer, or sparkling water, using Australian ingredients and packaging. The company is based in Melbourne and offers its products online and through distributors like Coles, Woolworths, and Amazon.
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Explore Your Options NowBuyer/Acquirer: Kommunity Brew
Company Information
| Buyer: | Kommunity Brew |
| Website: | kommunitybrew.com |
| Founded: | 2014 |
| Industry: | Beverage Manufacturing |
| Type: | Private with one round of equity crowdfunding |
| Total Funding: | USD $358,000 |
| Employees: | 9 (Self-published on LinkedIn) |
| Locations: | Head Office: 67-69 Howick St. Lathlain, Western Australia, Australia (2,125 miles from the target) |
Product Information
| Products: | Kombucha – A drink produced by fermenting sweet tea with a culture of yeast and bacteria. Water Kefir – A sparkling probiotic water in a variety of flavors. Health Shots – Immunity and energy probiotic shots, and collagen and metabolism boost shots. Home Brew Kits – Home brew starter kits and culture kits for kombucha and probiotic kefir water. |
| Market Reach: | Australia |
Financial Information
| Revenue: | Up to USD $5.0 million (Unconfirmed source: ZoomInfo) |
| Revenue per Employee: | Up to USD $555,556 (i.e., USD $5.0 million / 9 employees = USD $555,556 – estimated based on the self-published number of employees and the revenue from ZoomInfo) |
Buyer/Acquirer Overview: Kommunity Brew
Kommunity Brewing Co Pty Ltd (KBC), based in Lathlain, Western Australia, is a privately held company that manages multiple proprietary brands, contract packaging for start-up brands, and consultation for new market entrants. Proprietary brands held under KBC include Kommunity Brew, Cold Matter, Altered Cultures, GAME and Cannabliss Beverages. The company offers a series of raw and fresh kombucha, probiotic water, probiotic health shots, cold brew coffee and tea.
Previous Acquisitions by Kommunity Brew
- Cold Matter Cold Brew (2022) – A cold brew tea and coffee producer based in Australia that offers its products through its online store.
Sources
- Company Profile
- Other Sources
- Unconfirmed Sources
- zoominfo.com/c/cool-cool-beverage-co/471094047
- zoominfo.com/c/kommunity-brewing/473884519
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