A sobering moment: This brewery is saying goodbye after 36 years
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It's a sad day for beer aficionados and a sobering moment for the Australian craft beer community.
The Malt Shovel Brewery, a stalwart of the craft beer movement and a beloved fixture in Sydney's Camperdown for the past 36 years, is set to pour its final pint.
Lion, a beverage giant that has been the custodian of the brewery since 1993, has announced the closure of this iconic site by the end of August 2024.
The Malt Shovel Brewery has been more than just a place where beer is made; it has been a symbol of innovation and passion for the craft.
Founded in 1988 by independent brewer Chuck Hahn, the brewery quickly became a beacon for the burgeoning craft beer scene in Australia.
It was here that many Australians first tasted Eumundi, Little Creatures, New Belgium, and James Squire—names synonymous with quality and craftsmanship in the beer world.
But why is such a revered institution closing its doors? According to Lion's Managing Director James Brindley, the decision was not made lightly.
‘This week, we've informed our valued team members at Malt Shovel Brewery of the difficult decision we have taken—which is that we are proposing to close the site at the end of August 2024,' Brindley said in a statement.
'It's been a tough time for all players in the Australian beer industry—with overall volumes declining by 100 million litres since 2019, continuing a long-term decline in consumption of beer.’
'There has also been the ongoing cost of living pressures reducing discretionary spending, and continuing increases in costs like energy, labour and ingredients, as well as government excise, which is now the third-highest in the world.'
The closure of Malt Shovel Brewery is not an isolated incident. It follows the shutdown of Asahi's Matilda Bay brewpub in Victoria's Yarra Valley and comes amid a wave of collapses within the independent brewery sector.
Deeds Brewing, Big Shed, Hawkers, and Golden West Brewing Co are among the small and medium breweries that have entered administration since the beginning of the year, joining others like Ballistic, Parched, Wicked Elf, and Running With Thieves who have succumbed to the pressures of 2023.
The ripple effect of these closures is felt throughout the hospitality industry. The Carringbush Hotel, a Melbourne institution that stood for 135 years, recently closed its doors, with owner Liam Matthews citing the 'horrendous' costs that would require charging $20 per beer to stay afloat.
'We're putting more in the till than ever, but what is left over is less than ever,' Matthews said.
'The customer is not ready for that so we take the hit. The brewers and deliverers are facing similar pressures and pass costs on to us, but we're the end of the line.'
A report by financial services and software company CreditorWatch has painted a grim picture for the hospitality sector, predicting that one in 13 businesses could fail in the next 12 months.
The industry, heavily reliant on consumer spending, had ‘dried up’ as the cost-of-living crisis tightened its grip on discretionary income.
Have you been to Malt Shovel Brewery? What do you think of this closure? Share your thoughts and stories in the comments below!
The Malt Shovel Brewery, a stalwart of the craft beer movement and a beloved fixture in Sydney's Camperdown for the past 36 years, is set to pour its final pint.
Lion, a beverage giant that has been the custodian of the brewery since 1993, has announced the closure of this iconic site by the end of August 2024.
The Malt Shovel Brewery has been more than just a place where beer is made; it has been a symbol of innovation and passion for the craft.
Founded in 1988 by independent brewer Chuck Hahn, the brewery quickly became a beacon for the burgeoning craft beer scene in Australia.
Lion announced its decision to close Malt Shovel Brewery in August. Credit: @craftypint / Instagram
It was here that many Australians first tasted Eumundi, Little Creatures, New Belgium, and James Squire—names synonymous with quality and craftsmanship in the beer world.
But why is such a revered institution closing its doors? According to Lion's Managing Director James Brindley, the decision was not made lightly.
‘This week, we've informed our valued team members at Malt Shovel Brewery of the difficult decision we have taken—which is that we are proposing to close the site at the end of August 2024,' Brindley said in a statement.
'It's been a tough time for all players in the Australian beer industry—with overall volumes declining by 100 million litres since 2019, continuing a long-term decline in consumption of beer.’
'There has also been the ongoing cost of living pressures reducing discretionary spending, and continuing increases in costs like energy, labour and ingredients, as well as government excise, which is now the third-highest in the world.'
The closure of Malt Shovel Brewery is not an isolated incident. It follows the shutdown of Asahi's Matilda Bay brewpub in Victoria's Yarra Valley and comes amid a wave of collapses within the independent brewery sector.
Deeds Brewing, Big Shed, Hawkers, and Golden West Brewing Co are among the small and medium breweries that have entered administration since the beginning of the year, joining others like Ballistic, Parched, Wicked Elf, and Running With Thieves who have succumbed to the pressures of 2023.
The ripple effect of these closures is felt throughout the hospitality industry. The Carringbush Hotel, a Melbourne institution that stood for 135 years, recently closed its doors, with owner Liam Matthews citing the 'horrendous' costs that would require charging $20 per beer to stay afloat.
'We're putting more in the till than ever, but what is left over is less than ever,' Matthews said.
'The customer is not ready for that so we take the hit. The brewers and deliverers are facing similar pressures and pass costs on to us, but we're the end of the line.'
A report by financial services and software company CreditorWatch has painted a grim picture for the hospitality sector, predicting that one in 13 businesses could fail in the next 12 months.
The industry, heavily reliant on consumer spending, had ‘dried up’ as the cost-of-living crisis tightened its grip on discretionary income.
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