- Broo (BEE) has signed a two-year brewing agreement with CUB to produce Broo Premium Lager and Australia Draught
- CUB will produce and package Broo Premium Lager and Australia Draught aligning with Broo’s specifications
- Broo operates a brewery facility, however, the CUB agreement will give it access to increased production and supply capacity
- Broo expects to place orders for at least 48,000 cases on a quarterly basis and plans to make its first order of Broo Premium Lager in October this year
- Company shares have soared 41.2 per cent following this news and are trading for 2.4 cents
Broo (BEE) has signed a contract brewing agreement with CUB to produce Broo Premium Lager and Australia Draught.
CUB is a commercial producer and supplier of beer across Australia. It operates industry-leading breweries in Victoria, Queensland and Tasmania.
CUB will produce and package Broo Premium Lager and Australia Draught aligning with Broo’s specifications, including technical brewing recipes and packaging artwork.
Broo currently produces its beer at its own Mildura brewery facility. However, the CUB agreement will give it access to increased production and supply capacity for its lager and draught products. It will also allow Broo to meet the market demand from brands through its various retail distribution channels.
The agreement will span two years and will expire on August 31, 2022. Either company may end the agreement at any time if they choose however they must give no less than 120 days notice.
Broo expects to place orders for at least 48,000 cases on a quarterly basis during the term. The beer manufacturer plans to make its first order of Broo Premium Lager with CUB in October this year.
Company shares have soared 41.2 per cent following this news and are trading for 2.4 cents each at 12:26 pm AEST.