Victorian alcohol delivery startup Hairydog Group has added rival BoozeBud to its portfolio, acquiring the company’s assets a month after the business was placed in administration.
The terms of the deal were not disclosed by Hairydog says the acquisition will push its annual revenue above $75 million, delivering incremental profitability and reinforcing its position as a dominant player in the online liquor retail industry. The deal went through last Friday.
That figure suggests there major undercurrents flowing through online liquor retailing for smaller players after industry giants such as Endeavour Group-owned BWS lifted their online delivery game and moved into the space
When BoozeBud nearly doubled in size after acquiring Get Wines Direct in December 2021, the company said at the time that it would generate around $80 million in revenue annually.
BoozeBud was founded in 2014, and in August 2018, ZX Ventures, owned by AB InBev, acquired it for an undisclosed sum. Two years later, December 2020, its founders bought the business back, with Patrick Grove’s Catcha Group bankrolling the management buyout.
But the company headed into rocky waters with a majority of the board resigning earlier this year before BoozeBud Holdings Ltd and Pocko Ltd (trading as BoozeBud) were placed in voluntary administration with William Buck on May 2 and the online sales portal was shut down. The online liquor platform delivered more than 2,000 lines of beer, wine and spirits within Australia.
Hairydog says the relaunch of BoozeBud is imminent, with its redesigned website set to go live this weekend. BoozeBud’s former chief technology officer, Damien Smith, has joined the Hairydog team for its resurrection.
This deal by Hairydog comes 12 months after it acquired drinks wholesaler S&P Liquor Group for an undisclosed sum.
Hairydog, founded in 2020, operates nationally with warehouse distribution centres in Melbourne, Sydney and Adelaide. Head of e-commerce Ryan Agar said the acquisition of Boozebud’s delivers e-commerce infrastructure that will help maximise the combined potential of the two brands.
“Through this acquisition, we’re not just expanding our business footprint, we’re strategically aligning the strengths of BoozeBud’s advanced e-commerce capabilities with Hairydog’s proven retail expertise,” he said.
“This merger of two brands creates a powerhouse that is set to transform the online liquor retail space to provide better drinks and experiences to our customers.”
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