About Us Empire Beer Group’s [“Empire” or “the company”] aim is a dual-strategy approach: to identify and develop new “Colonial” brew-pub venues throughout Australia and to acquire a portfolio of profitable stand alone venues suitable for the distribution and sale of Colonial craft beer brands. Since its inception in December 2006, Empire has purchased Colonial Brewing Co, Margaret River which was awarded Champion Australian Brewery 2007, Champion Small International Brewery 2007 and Champion Small Brewery 2006 at the annual Australian International Beer Awards. Empire listed on the Australian Stock Exchange in January 2007 and in July 2007 purchased The Royal on the Waterfront in East Perth where Colonial draught beer is sold. Empire’s future targets involve developing Colonial micro-brewery venues in tourist locations throughout Australia that will drive volume and profit for the company as well as developing awareness of the Colonial brand. Stand-alone hotel venues may be purchased on the criteria that they are currently profitable, or that the management is confident of the potential for future profits and that the purchase price is within the company’s earning multiples criteria. The second criteria are the customer demographics and location of the hotel venue makes it suitable for the sale and distribution of the Colonial craft beers. The Craft Beer market is currently undergoing enormous growth worldwide. The growth has been driven by a new age of understanding, discovery and education. As consumers’ knowledge of beer increases, so to does their desire to purchase and try different flavours and styles of beer. Empire intends to be at the forefront of this growth and create a stable of quality products and brands that will be seen as the leaders within this category.
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The Opportunity The Australian craft beer market is mirroring the growth that has been experienced in the United States, which in 2005 represented nearly five per cent of the total beer market. In Australia the craft beer market is showing the same trends as experienced in the United States. Recently there has been a significant shift in the tastes and requirements of the Australian market, with an upward trend among consumers to upgrade their choice of beers and purchase craft beers instead of the traditional domestic premium brands.
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