Queenscliff Brewhouse enters voluntary administration after financial woes
- Replies 14
The Australian craft beer scene has been a vibrant and growing industry, with local breweries popping up in towns and cities across the country.
However, not all startup stories have a happy ending.
The recent news about a local brewery in Geelong served as a sobering reminder of the challenges faced by small businesses.
Queenscliff Brewhouse, famous for its variety of craft beer, gin, and whiskey, has unfortunately plunged into administration.
This development came as a shock to many, considering that it also housed a microbrewery, distillery, cellar, and a family bistro.
The brewhouse had a short lifespan, as it opened in July 2016.
Despite its picturesque location in Queenscliff and a solid 4.2-star rating on Google, the establishment succumbed to the pressures of the cost-of-living crisis and massive taxes imposed on beer.
The appointed administrators, Worrells' Scott Andersen and Nathan Deppeler have been overseeing the administration process.
They are set to meet potential creditors for the second time on Tuesday, 29 October.
Despite the financial woes, the brewery continued its operations.
'We are trading as normal during this period and anticipate the business will continue to do so,' a Queenscliff Brewhouse spokesperson shared.
Queenscliff Brewery's plight is not an isolated incident.
The brewing industry, which contributes $1.93 billion to the national economy annually and employs about 10,000 people, faced several challenges.
Richard Adamson, founder of Young Henrys and president of the Inner West Breweries Association, accused Prime Minister Anthony Albanese of abandoning the craft brewery industry.
'When he was in opposition, he was supportive and helped get the remissions scheme for excisable alcohol in 2021,' Mr Adamson said.
The current government has been criticised for not providing relief on exorbitant beer taxes, which took up about a third of the price of beer.
Australia has the third highest beer tax in the world, following Norway and Finland.
Independent Brewers Association CEO Kylie Lethbridge echoed Mr Adamson's concerns.
She stated that the industry may not exist in 12 months without urgent government support.
With production costs rising by as much as 40 per cent, about 24 microbreweries have already closed in the past year.
In turn, the average price of a pint of beer in Sydney now exceeds $15.
The challenges faced by independent brewers were compounded by the dominance of breweries Lion and CUB, who own 85 per cent of the market and the majority of beer taps in Australia.
The increasing red tape and compliance measures also made it harder for small, family-owned businesses to survive.
Queenscliff Brewery's closure was a stark reminder of the fragility of small businesses in the face of economic pressures and regulatory challenges.
Have you visited Queenscliff Brewing or other local breweries? What do you think can be done to support these small businesses? Share your thoughts and insights with us in the comments section.
However, not all startup stories have a happy ending.
The recent news about a local brewery in Geelong served as a sobering reminder of the challenges faced by small businesses.
Queenscliff Brewhouse, famous for its variety of craft beer, gin, and whiskey, has unfortunately plunged into administration.
This development came as a shock to many, considering that it also housed a microbrewery, distillery, cellar, and a family bistro.
The brewhouse had a short lifespan, as it opened in July 2016.
Despite its picturesque location in Queenscliff and a solid 4.2-star rating on Google, the establishment succumbed to the pressures of the cost-of-living crisis and massive taxes imposed on beer.
Despite entering administration, Queenscliff Brewhouse remains operational, including their social media pages. Image Credit: Facebook/Queenscliff Brewhouse
The appointed administrators, Worrells' Scott Andersen and Nathan Deppeler have been overseeing the administration process.
They are set to meet potential creditors for the second time on Tuesday, 29 October.
Despite the financial woes, the brewery continued its operations.
'We are trading as normal during this period and anticipate the business will continue to do so,' a Queenscliff Brewhouse spokesperson shared.
Queenscliff Brewery's plight is not an isolated incident.
The brewing industry, which contributes $1.93 billion to the national economy annually and employs about 10,000 people, faced several challenges.
Richard Adamson, founder of Young Henrys and president of the Inner West Breweries Association, accused Prime Minister Anthony Albanese of abandoning the craft brewery industry.
'When he was in opposition, he was supportive and helped get the remissions scheme for excisable alcohol in 2021,' Mr Adamson said.
The current government has been criticised for not providing relief on exorbitant beer taxes, which took up about a third of the price of beer.
Australia has the third highest beer tax in the world, following Norway and Finland.
Independent Brewers Association CEO Kylie Lethbridge echoed Mr Adamson's concerns.
She stated that the industry may not exist in 12 months without urgent government support.
With production costs rising by as much as 40 per cent, about 24 microbreweries have already closed in the past year.
In turn, the average price of a pint of beer in Sydney now exceeds $15.
The challenges faced by independent brewers were compounded by the dominance of breweries Lion and CUB, who own 85 per cent of the market and the majority of beer taps in Australia.
The increasing red tape and compliance measures also made it harder for small, family-owned businesses to survive.
Queenscliff Brewery's closure was a stark reminder of the fragility of small businesses in the face of economic pressures and regulatory challenges.
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