ACCC will not oppose Stone & Wood sale to Lion

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The ACCC will not oppose Lion’s proposed acquisition of Fermentum. Fermentum and Lion manufacture a range of alcoholic and non-alcoholic beverages including beer, cider, alcoholic seltzer and kombucha.

The ACCC focused its investigation on whether the acquisition would substantially lessen competition in the supply of beer, given Fermentum’s popular flagship brand Stone & Wood.

“The ACCC was initially concerned that the proposed acquisition would remove a large, popular independent craft brewer that has plans to expand its capacity and potentially compete more aggressively against the two major brewers in Australia, being Lion and Asahi/Carlton & United Breweries” ACCC Commissioner Stephen Ridgeway said.

“However, our investigation concluded that a wide range of alternative independent craft beers will remain available in the market even if the transaction goes through.”

The ACCC also concluded that overall, the Fermentum brands do not compete closely with Lion’s products, as Fermentum’s products are generally in a higher price bracket and Lion’s craft-style brands are generally perceived as mainstream.

The ACCC conducted a large number of market inquiries with customers, competitors and industry bodies, which did not raise strong competition concerns.

The ACCC’s investigation also considered whether the proposed acquisition would stop the growth of independent brewers, or otherwise restrict their ability to access beer taps in hospitality venues or shelf space at liquor stores.

“Consumer demand for independent beer has grown significantly over the last five years, and this has helped independents grow their presence at hotels, clubs and retailers,” Mr Ridgeway said.

“We also know from speaking to a wide range of venues, particularly those in metropolitan areas, that they typically reserve one or two taps for independent brands.”

The ACCC understands that Stone & Wood would no longer be eligible for the taps reserved for independent brewers after the acquisition. Therefore, it is likely other independent brewers will be able to take up many of the taps that were previously Stone & Wood independent taps.

During the investigation, a number of market participants raised concerns that the packaging of beer made by the major breweries may confuse consumers about who ultimately owns the company that made the beer.

“Consumers that wish to purchase independent craft beer should carefully read the information provided on the label, or ask the person serving them if the beer is made by an independent brewer,” Mr Ridgeway said.

Separate to the potential impact of Lion’s proposed acquisition of Fermentum, the ACCC continues to hear concerns from the industry about the exclusivity agreements limiting the ability of independent brewers to compete in general.

In 2017, following the beer taps investigation, the ACCC announced that it would not be taking legal action at that time. However, the ACCC is closely monitoring any potential impact these exclusivity arrangements have on competition.

Acquisitions of small, independent competitors by large companies, especially when the small competitor has been able to grow market share, continue to be a concern of the ACCC. Although the ACCC did not find the sale of Fermentum to Lion would substantially lessen competition, it will closely review any further acquisitions in this industry.

More information can be found at: Lion Pty Ltd – Fermentum Pty Ltd


Fermentum manufactures and distributes a range of alcoholic beverages, including its flagship beer brand Stone & Wood.

Headquartered in Byron Bay, NSW, Fermentum’s primary brewery operation is located in Murwillumbah, NSW. It also owns and operates smaller breweries in Byron Bay, Brisbane and Melbourne, and has plans to build another brewery in the Northern Rivers, NSW. Fementum’s other brands include Fixation, Two Birds, Forest for the Trees, Little Dragon and Sunly Seltzers.

Lion, a wholly-owned subsidiary of Japan-based food and beverage company Kirin Holdings Company Limited, manufactures and distributes a range of alcoholic and non-alcoholic beverages. Its Australian beer portfolio includes XXXX, Tooheys, Iron Jack, Furphy, Little Creatures and James Squire, amongst others.

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