Mighty Craft Managing Director Katie McNamara steps down

AUSTRALIA – Mighty Craft, an Australian beverage group, has announced that Managing Director Katie McNamara will be stepping down from her role and leaving the board of directors effective July 12.  

McNamara, who joined the board in April 2023, is departing at the end of her fixed-term contract. 

Grant Peck, the group’s chairman, will replace McNamara. “The board and management would like to take this opportunity to thank Katie for her significant contribution and leadership of the business,” Peck said.  

“Katie has supported the company through some challenging times, and we are grateful for her dedication.” 

Peck will assume the role of “executive chair” and serve as interim CEO three days a week starting July 1. He has been given a six-month contract with an annual fee of A$200,000 (US$122,147). 

This leadership change occurs amidst financial difficulties for Mighty Craft. The company has been grappling with debt issues and has recently secured an agreement with senior lender Pure Asset Management to reduce its liabilities.  

As part of this agreement, Mighty Craft sold 7.5 percent of its business to Pure Asset Management. 

McNamara stated, “The royalty swap represents further meaningful debt reduction, which is a key focus of the MCL board. This, combined with the A$2.3 million (US$1.53M) debt reduction announced in Q3 FY24 and the proposed flow of funds from the settlement of the 78 Degrees and Mismatch sale, will represent over A$10 million (US$6.65M) of debt reduction across H2 FY24.” 

During its third quarter, the company reported a revenue of A$19.8 million (US$13.18M), a 22 percent decline year-on-year, and a net operating cash flow loss of A$2.4m.  

In response to these challenges, the company initiated a strategic review in May last year. This included the sale of smaller brands such as Jetty Road and Foghorn Breweries, which raised A$10 million (US$1.6M). 

Additionally, Mighty Craft announced early talks with the shareholders of Better Beer, in which it holds a 33 percent stake, regarding a possible merger.  

The proposed deal would see Mighty Craft acquire the remaining shares in Better Beer, with Better Beer’s shareholders receiving shares in Mighty Craft and participating in a subsequent capital raise. 

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