Company Information for Empire Beer Group Limited

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Company Statement

Empire Beer Group’s [“Empire” or “the company”] aim is a dual-strategy approach: to identify and develop new “Colonial” brew-pub venues throughout Australia and to acquire a portfolio of profitable stand alone venues suitable for the distribution and sale of Colonial craft beer brands.

Since its inception in December 2006, Empire has purchased Colonial Brewing Co, Margaret River which was awarded Champion Australian Brewery 2007, Champion Small International Brewery 2007 and Champion Small Brewery 2006 at the annual Australian International Beer Awards. Empire listed on the Australian Stock Exchange in January 2007 and in July 2007 purchased The Royal on the Waterfront in East Perth where Colonial draught beer is sold.

Empire’s future targets involve developing Colonial micro-brewery venues in tourist locations throughout Australia that will drive volume and profit for the company as well as developing awareness of the Colonial brand. Stand-alone hotel venues may be purchased on the criteria that they are currently profitable, or that the management is confident of the potential for future profits and that the purchase price is within the company’s earning multiples criteria. The second criteria are the customer demographics and location of the hotel venue makes it suitable for the sale and distribution of the Colonial craft beers.

The Craft Beer market is currently undergoing enormous growth worldwide.  The growth has been driven by a new age of understanding, discovery and education.

As consumers’ knowledge of beer increases, so to does their desire to purchase and try different flavours and styles of beer.

Empire intends to be at the forefront of this growth and create a stable of quality products and brands that will be seen as the leaders within this category.

Company Diagram

Colonial Brewing Co.

2007 Champion Australian Brewery

2007 Champion International Small Brewery

2006 Champion Small Brewery

Current Operations

The Opportunity
The Australian craft beer market is mirroring the growth that has been experienced in the United States, which in 2005 represented nearly five per cent of the total beer market. In Australia the craft beer market is showing the same trends as experienced in the United States.
Recently there has been a significant shift in the tastes and requirements of the Australian market, with an upward trend among consumers to upgrade their choice of beers and purchase craft beers instead of the traditional domestic premium brands.

Growth Strategy
Empire plans to capitalise on this opportunity through a growth strategy focused on increasing sales by building new Colonial breweries in key locations throughout Australia that provide quality venues that cater for this emerging craft beer market. Each venue will brew its own beer on site for sale in that venue.
Empire will identify appropriate locations interstate for further venues. It is anticipated that the first interstate venue will open in 2008. High Margin End-to-End Business Model
Empire has developed a vertically integrated business model that has the opportunity to maximise returns to investors in the growing premium and craft beer segments.
Empire’s business model involves the sourcing and production of high-quality craft beers on site and selling directly to consumers through a planned network of family-friendly and strategically located venues in well-recognised tourism precincts and destinational locations, such as Fremantle in Western Australia.
The unique strength of this business model is the ability of Empire to control both quality and costs and avoid the inevitable price pressures associated with traditional distribution channels.
To maximise the sales and margin opportunities that business presents, sales of its draught and packaged products will be via its own venues where they will be sold directly to consumers at full margin. This will significantly increase the average per person sale and will create a reason to revisit the venue to access the products.

In addition to this the bottled beers will be available for sale over the internet on the www.colonialbrewingco.com.au website. There will be a significant database developed from people visiting the different Colonial venues throughout Australia and these people will be contacted and given the opportunity to purchase Colonial beer over the website.
As the reputation of the Colonial Brewing Co grows, via the growth in venues and awards from beer shows, Colonial will develop a database of consumers who visit the different venues in Australia. These people will be communicated with directly via a regular email newsletter that will invite them to purchase Colonial beers that will be sent directly to their doorstep.

Board of Directors and Key Management

Mel Ashton	Non-Executive Chairman
Phillip Gallagher	Managing Director
Ian Macliver	Non-Executive Director
Kate Lamont	Non-Executive Director
Philip Lucas	Non-Executive Director

Company Address Suite 5, 531 Hay Street Subiaco Business Centre SUBIACO, Western Australia, Australia WA 6008 Telephone: +61 8 9380 8339 Facsimile: +61 8 9380 8338 Email: info[at]empirebeergroup.com.au Website: http://www.empirebeergroup.com.au

Nominated Advisors Grange Consulting Group Pty Ltd 945 Wellington Street, West Perth WA 6005

Most Recent Statement

31/10/08 - Appendix 4C - quarterly
17/10/08 - Annual Report to shareholders
15/10/08 - Results of Meeting
18/09/08 - Full Year Statutory Accounts
29/08/08 - Preliminary Final Report
11/08/08 - Agreement for Sale