Figured I should attach the offiical release to the market this morning from GDA instead of the link to an article on a craft beer website where I first learnt of the Stomping Ground takeover in my previous straw.

A bit more info regarding the finances regarding the takeover are included too including confirming that no capital raising will be required

GDA went into a trading halt late Friday afternoon that relates to the purchse of Craft Brewers 'Stomping Ground'. There has been talk for sometime of Good Drinks attempting to increase their presence in Victoria given their successful opening of Brewpub 'Automic' in Redfern, Sydney and their purchase of a pub in Eumundi in Qld. Stomping Ground has been a successful craft brewer in Victoria and compliments GDA's current range nicely imo.

More information including quotes from Stomping Ground and GDA can be found here

GDA have announced a commercial agreement with multinational brewing company Molson Coors.

GOOD DRINKS SIGNS TRANSFORMATIVE DISTRIBUTION

AGREEMENT WITH MOLSON COORS

• Contract expected to add $35m - $40m to revenue and $3m - $4m

to EBITDA

• Expands channels to market for high margin GDA house brands

to further drive volume and margin growth as contract brewing

unwinds

• Recognises the capability and value generated by GDA’s multi-

year investment in people and process across Australia in sales,

marketing and distribution

The full announcement can be read here

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02524310-6A1092696?access_token=83ff96335c2d45a094df02a206a39ff4

GDA is down over 20% since the start of the year and the price still appears to be suffering downward pressure. Even good news regarding GDA replacing Coke as the importer and distributor of Magners has not stemmed the tide despite current sales of Magners being roughly 1million litres a year in Australia. On top of the extra sales, GDA will use Magners as a vehicle in their continuous pursuit of cracking the east coast.

I like that GDA is focused on what they are best at which is brewing beer but are still targeting other segments of the liquor industry by using the clout of known brands by being distributors of their products. This is good for business growth. Their next quarterly update will be interesting to see how much the explosion of Covid cases in WA has impacted turnover at their new Freo brewpub.

As it stands currently, I believe the share price is sitting just under fair value. I own shares IRL and am sitting on a small profit however I don't believe I will be making a fortune in the near future. Given the competitive industry it sits in this one will be a slow burn but I'm happy to keep holding as I think management are doing a great job and have the company well positioned for the future.

Personally, I quite enjoy their Single Fin offering and it is now one of my go to beers as it is easy to drink but still full of flavour. I thought their limited edition stout Dawn Patrol was fantastic too. Maybe being a shareholder makes their beers extra tasty to me. I'm also wondering if anybody knocking about this site has access to IBIS world or an equivalent that could provid actual stats on what market % Magners currently have of the Australian Cider market?