The brewing company that promised to create a $100 million environmentally-friendly brewery and gig venue in Ballarat's west is selling its major assets.
According to Broo's annual report, the company had a net loss of more than $3.18 million over the 2017-2018 financial year. It is now in negotiations around outsourcing brewing requirements in order to create a 'cost effective supply chain'.
The Mildura-based brewer owns a 15-hectare site at the Ballarat West Employment Zone, which is now valued at around $2.12 million. In February 2017, the company announced plans to build a brewery on the site, with later plans including a 10,000-set event venue, zipline, museum and hospitality ventures.
The Ballarat land is subject to a buy-back clause, according to the report. The land's vendor has the option to buy back the land, if Broo has defaulted on its promise develop a commercial brewery at the site and employ at least 100 full time works within five years of settlement.
The company's land acquistion at BWEZ cost $2.16 million from Major Projects Victoria, according to 2017 Australian Securities Exchange (ASX) documents.
The annual report noted that once outsourcing was in place, the company would likely move to sell the Mildura brewing plant. Broo's Sorrento Brewhouse has also been put on the market.
Directors for the company said the losses were "expected", but the report lodged to the ASX said Broo was focused on significant Australian expansion over the next 12 months, with the release of new product lines.
In March this year the potential sale of the BWEZ land was floated. The Broo company stated in its quarterly report that the board was "exploring realisation strategies for the Ballarat land", including joint ventures or sale.
In April 2017, the company announced plans to open a Broo Burger Bar at the Delacombe Town Centre, but the proposal was dropped in November last year, with the directors noting they would be better served by focusing Ballarat operations on the BWEZ development.