Soon to be Ballarat beer brewing giants Broo Ltd have inked a $120 million deal with a major Chinese distributor which will see 1.5 billion litres of lager purchased over seven years.
The business which in February announced it would be building a $100 million brewing facility in the Ballarat West Employment Zone signed the deal with Beijing Jihua Information Consultant Ltd, which will see its premium lager sold in supermarkets, retail chains and hospitality venues across the country.
Earlier this year Broo became the largest stakeholder in the BWEZ precinct when it purchased 15 hectares of land for about $2.16 million.
In a statement Broo chief executive Kent Grogan said “Jihua’s distribution reach in China will see Broo Premium Lager penetrate the Chinese beer market and expand into a major brand over the coming years”.
The carbon neutral brewery is expected to generate 100 ongoing jobs and produce 480 million bottles of beer each year. The site which is expected to couple as a brewing museum with bar and restaurant areas is also expected to boast a 10,000-capacity outdoor events space.
The company initially stated it intended to begin construction in February 2018, with works expected to take place for about two years.
The company’s domestic beer production is currently based out of the Mildura Brewery, which it purchased in February. Broo entered into an agreement with business Jinxing Beer Group in March to produce its premium lager for the Chinese market, however both domestic and international production will eventually be based out of Ballarat.
The business declined to say whether the landmark deal would encourage it to speed up development at the BWEZ site.