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Business

Just Wines nabs drinks rival Beer Cartel in M&A deal

- July 8, 2024 2 MIN READ
The empire of online drinks brand Just Wines is expanding again with the acquisition of craft beer e-tailer Beer Cartel and its gifting sub-brand Brewquets.

The terms of the deal were not disclosed, but the merger comes nearly 3 years after the online beer store raised $1.45 million in a Birchal crowdfunding campaign from more than 1000 investors. It was billed at the time as a pre-Series A for Beer Cartel, founded in 2009, at a $20 million valuation.

Beer Cartel founders Richard Kelsey and Geoff Huens will remain with the business over the short-to-medium term as part of the transition. along with two members of staff. Shareholders will not receive a stake in Just Wines as part of the M&A deal, but are likely to see some payment from the sale, and the benefits offered as part of their investment will be retained under the new owners.

Nitesh Bhatia

Just Wines founder Nitesh Bhatia

In the past 12 months, Just Wines has been expanding its portfolio via a range of distressed assets. In August 2023 it acquired non-alcoholic beverages store Sans Drinks from the voluntary administrators Jirsch Sutherland in a deal that saw secured creditors repaid and unsecured ones receiving around 48 cents in the $1.

The in April, a month after it too was placed in voluntary administration, Just Wines acquired the craft spirits subscription retailer Liquor Loot from Jirsch Sutherland.

It’s been a tougher time for craft brewers post-pandemic as consumers weaned themselves of lockdown drinks and consumption fell, with dozens of breweries closing, handing the key to administrators or selling in 2023. Also hit was veteran online liquor platform BoozeBud, placed in voluntary administration in May 2023 then subsequently sold to HairyDog.

In the past week Brisbane beer bar Brewski and West End brewer Brew Barons both announced their closures.

Just Wines founder Nitesh Bhatia said the decision to buy Sydney-based Beer Cartel feeds their ambition to have a greater 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 aficionados to connect,” he said.

“We’ve seen significant growth within the business 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.”

Brewquets launched in 2016 as a beer-only gifting business, before adding wine in 2022, then spirits in 2023.  Beer Cartel also runs a monthly beer subscription service. 

Just Wines has around 6000 wines in its range and Bhatia said they “don’t want to revolutionise these two highly successful businesses” in Beer Cartel and Brewquets.

“We’re excited to be the new custodian of the brand and see the success of the business going forward. We’ll be welcoming its diverse craft beer product range including its very popular Beer Advent Calendar. For Brewquets we see significant synergies across the entire portfolio of the group. We now have beer, wine, spirits and non-alcoholic drinks that we can offer as gifts to both consumers and businesses alike,” he said.

“Brewquets can be a one-stop gifting shop for all occasions, whether it be a birthday, Christmas or client gift. Utilising our range from each business unit we are excited by the depth of product range we will be able to offer.”