Asahi Beverages has acquired adult soft drink company StrangeLove for a mystery sum as a growing number of health-savvy Australians turn towards the lucrative non-alcoholic drink market and away from the boozy one.
StrangeLove is the brainchild of two Byron Bay locals, James Bruce and Stafford Fox, who sought to offer a more eclectic alternative to the stock-standard soft drinks with adult-oriented branding and premium packaging.
The range, which began with Organic Ginger Beer, Blood Orange & Chilli, and Bitter Grapefruit nine years ago, has now grown to more than 25 products including Tonic No. 8, “Lo-Cal Yuzu”, “Fancy Lemonade”, Double Ginger and a range of premium sparkling waters.
The entrepreneurs struck while the iron was hot — StrangeLove has more than doubled in volume and revenue in the last two years alone to become one of Australia’s fastest-growing beverage companies during the pandemic.
Their range straddles the line between the teetotallers and the spirit swillers, tapping into the $2.8 billion soft drink market while also riding the crest of the premium mixer category surging some 40% in the past three years.
Asahi Beverages Group CEO Robert Iervasi says this will mean big bucks in restaurants, cafes, hotels, and pubs as both an “on-premise premium mixer and adult soft drink space”.
“It is clear Australians want more sophisticated and lower-sugar soft drinks, which has fuelled demand for StrangeLove’s amazing products in recent years,” he said in a statement.
“This deal will also strengthen our offer to retailers, which are dedicating more shelf-space to premium non-alcohol beverages.”
Australia is experiencing a tidal wave of shifted allegiance towards booze-free drinks that goes far beyond dry July; non-alcoholic beer alone makes up more than 1% of beer sales at the retail level and is expected to hit 2% by 2025.
Of the acquisition, which will not see any change to staff or operations at StrangeLove, Bruce says joining the Asahi family is an exciting new chapter for the team after nine years “on our own”.
“With their FMCG-expertise and long-standing customer relationships in retail, hospitality and beyond, Asahi Beverages will help grow StrangeLove in a way we couldn’t on our own,” he said in the same statement.
But don’t expect to see any change to the weird and whacky ways of StrangeLove, Bruce says, with Asahi promising to retain the unique spirit and voice of the brand.
“They share our absolute commitment to quality and we’ve been impressed by how they’ve supported their other craft partners to retain their unique identity and foster innovation.”
When approached by SmartCompany, an Asahi spokesperson declined to disclose the acquisition figure.
Asahi Beverages has three business divisions in Oceania: Asahi Lifestyle Beverages (which was once known as Schweppes Australia), Carlton & United Breweries (alcohol) and Asahi Beverages New Zealand.
Oodles of household-name drink brands fall under the Asahi banner, including Schweppes, Solo, Cottee’s, Cool Ridge water and Spring Valley, and Charlie’s juices.
Emma Elsworthy is Climate Editor at Crikey, SmartCompany, and The Mandarin, and writes daily morning newsletter the Worm. Before joining Crikey in 2021, Emma was a breaking news reporter in ABC’s Sydney newsroom, a journalist at BBC Australia, and a journalist in Fairfax Media’s regional network. She was part of a team awarded a Walkley for coverage of the 2019-2020 Black Summer bushfire crisis, and won the Australian Press Council prize in 2013.
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