Australian craft brewer Oz Brewing is to outsource part of its beer production to fellow niche brewer Gage Roads Brewing Co., the company said today (8 February).

The two companies have signed a two-year deal that will see Gage Roads handle Oz Brewing's overflow production.

Oz Brewing said the move would allow it to build its retail business at its flagship Mad Monk site in Fremantle, Western Australia.

"The production outsourcing decision is a logical step as it provides Oz Brewing with access to the economies of scale afforded by Gage Roads' large-scale brewing and packaging facility without any impact on branding initiatives," Oz Brewing MD Trevor Pugh said.

Oz Brewing listed on the Australian Stock Exchange in last December. It expects to open its Mad Monk Brew and Café complex in Fremantle later this year.

Gage Road, which also listed last year, has its beers distributed nationally by Hardy Wine Company, Australia's largest wine group.