Online beer retailers Beer Cartel and Brewquets sold to Just Wines
Just Wines has announced the acquisition of online beer retailer Beer Cartel and its gifting subsidiary Brewquets. This move follows Just Wines' recent purchases of Sans Drinks and Liquor Loot, expanding its Ecommerce liquor portfolio.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Acquisition
Investors: Just Wines
Just Wines founder Nitesh Bhatia said the acquisition helps deliver on the company's goals to increase its share of Australia's off-premise alcohol market.
"We started Just Wines in 2012 to support small wineries and provide an accessible platform for sellers and wine enthusiasts to connect," Bhatia said. "We've seen significant growth and have built out further capability through the acquisition of Sans Drinks and Liquor Loot. This most recent acquisition means the group covers all main liquor categories in Australia, further strengthening our competitive position."
Beer Cartel, founded in 2009 by Geoff Huens and Richard Kelsey, has served over 100,000 customers in its 15-year history. The company raised more than $1.4 million in a crowd-sourced funding round on Birchal in 2021, representing about 42 per cent of total shares.
Bhatia declined to disclose the purchase price but said that after creditors are paid, the balance will be distributed to shareholders. Crowdfunding participants' benefits will be honoured and retained in the Beer Cartel business.
Just Wines plans to maintain the key strengths of both Beer Cartel and Brewquets. "We don't want to revolutionise these two highly successful businesses. We'll simply look at how we can integrate our key capabilities to grow the customer base for each," Bhatia said.
The acquisition allows Just Wines to diversify into the craft beer market, tapping into a different segment of the alcoholic beverage industry. For Brewquets, the deal offers synergies across the entire Just Wines portfolio, creating a one-stop gifting shop for all occasions.
Beer Cartel co-founder Richard Kelsey emphasised the importance of maintaining service quality and product range. "From our perspective, it's all about ensuring the same levels of service, quality and range are maintained as we pass the reins to Just Wines," he said.
Both Beer Cartel founders will help with the transition in the short to medium term, with two team members already absorbed into the Just Wines business.
