Big Drop signs licencing deal with In Good Company
Alcohol-free brewer Big Drop has entered into a licence agreement with In Good Company, the owner of Fourpure Brewing and Magic Rock Brewing.
The move, which Big Drop claimed formed part of its plans “to significantly scale its business and facilitate global growth ambitions” specifically in the UK, US and Australia, has been described as “an evolution of its decentralised business model” and would give the Big Drop “the opportunity to swiftly increase revenues to in excess of £5m per year.
Speaking to the drinks business, Big Drop founder Rob Fink said: “The agreement with In Good Company gives us a safe base for investment.”
Echoing this, In Good Company CEO Steve Cox explained: “This partnership means we can grow together under one roof with all brands in the portfolio enjoying the combined synergies they bring.”
Speaking about the deal, Big Drop managing director Joseph Walsh stated: “We’ve worked hard to build a solid platform for the Big Drop brand and this is undoubtedly the best route to scale the business for the future. Brewing under licence simplifies our supply chain and broadens our availability while still allowing us to invest in growth.”
Fink added: “We’re delighted that we are on this journey with In Good Company who have the perfect production facility in Bermondsey, have nailed our brew-to-strength techniques and have an extremely capable team behind them.”
In response to whether Big Drop had ambitions to grow bigger than Fourpure or Magic Rock, Fink replied: “In the USA ‘craft’ is a defined term and relates to volume and ownership. Within those constraints both Sierra Nevada and Boston Beer Company are still considered ‘craft’. Would Big Drop like to become as big as either of those companies? Why not!”
Stamping out fears that the brewery could soon be considering a sale, Fink reassured: “A sale isn’t on the horizon for us yet. We’ve got lots to do before we get to worrying about the answers to those questions. The US is exploding and we’ve got plenty to build on with In Good Company.”
Walsh explained: “To be clear, In Good Company, owners of Magic Rock and Fourpure will be our UK brewing partner only. We have similar plans and aspirations to replicate this model in other markets where we currently brew. In Good Company also has a reach across their existing export markets where Big Drop will benefit. It was an obvious partnership to progress as In Good Company’s commercial capability has the scope to extend Big Drop’s distribution in the UK where we have previously been unable to grow due to geography and scale. None of this will affect In Good Company’s craft credentials. It has and will remain a key brewer in the craft segment of the beer world.”
He told db: “Insofar as the craft beer category has suffered numerous challenges in the past few years with Covid, rising costs, CO2 issues and shipping challenges all resulting in numerous craft breweries closing. We now have a sustainable model with a reputable brewing partner that will brew, market and sell Big Drop, which for me is a real success story against a backdrop of uncertainty in the category. Our aspirations and ambitions will be to increase our reach and distribution to as many customers and consumers as possible within our current capabilities.”