E-Malt.com News article: Australia: Westcoast Brewery announces $100 mil expansion plan

A West Coast brewing company has announced a $100 million expansion plan which will include opening a chain of bars and restaurants in major Australian and New Zealand cities, New Zeeland Press Association reported September 18.

Just six months after buying a small Westport brewery Miners Brewery, Westcoast Brewery this week released its prospectus and says it is embarking on a major capital raising exercise.

Within five years, it hopes to have established about 40 West Coast bars and restaurants.

Founder and former Coaster Paddy Sweeney has already raised $1m in seed capital to get the company off the ground.

So far this week, more than 200 investment statements have gone out to interested parties. An extensive advertising campaign incorporating print, radio and television will be launched soon.

Mr Sweeney said the money raised from the first prospectus would be used to buy labelling and bottling machines for the Westport brewery, and to start acquiring high-profile bars on both sides of the Tasman.

"It should see us with one, if not two bars, under construction or purchase by March."

He declined to say what the bars would be worth, but said the collective value in five years time could exceed $100m.

All profits would come back to the West Coast-based company.

He said the plans were ambitious but the principals involved in the company -- including Rich List businessman John Hynds -- had the "wherewithal to carry them out".

"This is truly the ground floor opportunity for interested investors and it will be remembered well for that."

The idea started five years ago when Mr Sweeney, founder of the Hokitika-based Good Bastards club, and seven other businessmen had a business plan drawn up by Ernst and Young.

In March, the new company purchased the Miners Brewery, in Westport, and now has more than 100 outlets taking its beer.

Earlier this month, it scored a coup over "Asian-owned, Dominion Brewery's wholly-owned, Auckland-based Monteith's" by winning the sponsorship for the Hokitika Wildfoods Festival.

Mr Sweeney said the company was trying to minimise borrowings so assets were not vulnerable to being sold.

The first prospectus offer is 34c a share, but Mr Sweeney predicted that by next year the same shares would be worth $1 each.


19 September, 2007