Kommunity 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
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
Industry: Beverage Manufacturing
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.

Cool Cool Beverage Company operates under two brands, Sips Sparkling Water and Liberty Kombucha.

Buyer/Acquirer: Kommunity Brew

Company Information

Buyer:Kommunity Brew
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.

Kommunity Brew offers a variety of healthy drinks in Australia.

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.


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