Beer DeLuxe is set for major expansion

Dixon Hospitality will expand the Beer DeLuxe franchise to a possible 25 venues, with a likely ASX listing of the parent company early next year.

Michael Dixon, the company’s director of corporate development, told Australian Brews News that the $31 million Dixon paid for Beer DeLuxe was based on very strong sales through the five existing venues, as well as the expansion potential for the brand.

“We pay as per what the bottom line is and then it’s also what expansion or what added value I can put on top of it,” he said.

“Beer DeLuxe came with the opportunity to roll that brand out Australia-wide. We’re going to turn probably two existing hotels in our portfolio into Beer DeLuxe in the next 12 to 18 months.

“And then we’re also looking for greenfields sites like the Brisbane one to build some more.

“At a guess I’d say we want to get it up to 20 or 25 around Australia: Two in each major city, at a minimum, and certainly lots more spread around the suburbs of each major city,” said Dixon.

He said construction will begin on the Brisbane venue in two months, ahead of a March 2017 opening.

The publican said the Beer DeLuxe brand was complementary to Dixon’s pre-existing portfolio, which was deliberately comprised of venues distinct from one another.

“The one thing I was missing a little bit, was a brand,” he said.

Dixon reaffirmed that previous Beer DeLuxe owners Craig Shearer and Jason Sheather will be staying on board to guide the expansion.

“They’re great guys and Dixon’s excited to have them help out in the near and long-term future as well,” he said.

Dixon said the hotly anticipated listing of the group on the Australian Stock Exchange is likely to occur in the first quarter of 2017.

Win ‘A Year of Beer’
Beer DeLuxe is giving patrons the opportunity to win ‘A Year of Beer’ (365 Craft Beers). Thecompetition isrunning throughout the entire month of August.

With every purchase from selected partner breweries at each venue, patrons will be given an entry card to go into the nation-wide draw for the 365 beer prize-pack, that will be made up of slabs from each partnering brewery.

Patrons can enter as many times as they like (1 entry per drink purchase). Partner breweries vary between venues.