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Brewery Closures


Classic Brewing Co

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On 9/29/2023 at 3:44 PM, Classic Brewing Co said:

It looks like another craft brewery is in trouble, not good for the industry but it seems to be a leasing issue.

https://brewsnews.com.au/willie-the-boatman-could-close-by-christmas/

Sad to see breweries close. They are the only thing that stands between us brewers and the accountant-made beer from Asahi and Kirin.

Having said that, some breweries are just nuts with their pricing. Ok, they're 500ml cans but a 4-pack at Fortitude Brewing for 52 bucks is a little steep. Get real fellas. Saw a Brit UPA in a champagne bottle at an Uncle Dan's or a 1st Choice and they wanted over 35 bucks or something ridiculous for it. Tellem they're dreaming. 

I know they have huge costs and all and they're not getting rich any time soon but somewhere there is a limit to what people are willing (and able) to pay. 

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15 minutes ago, Aussiekraut said:

Sad to see breweries close. They are the only thing that stands between us brewers and the accountant-made beer from Asahi and Kirin.

Having said that, some breweries are just nuts with their pricing. Ok, they're 500ml cans but a 4-pack at Fortitude Brewing for 52 bucks is a little steep. Get real fellas. Saw a Brit UPA in a champagne bottle at an Uncle Dan's or a 1st Choice and they wanted over 35 bucks or something ridiculous for it. Tellem they're dreaming. 

I know they have huge costs and all and they're not getting rich any time soon but somewhere there is a limit to what people are willing (and able) to pay. 

I agree, we have a few good breweries here in Adelaide, Pirate Life/Big Shed etc. but the prices are getting ridiculous, a standard mid-strength pint is around $10 then it goes up to 12-15+.

As far as the dreaded 4 packs, the are $30 & more.

We all know about rising costs, wages etc. but at least have a happy hour or a few daily specials.

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On 10/1/2023 at 2:25 PM, Aussiekraut said:

Sad to see breweries close. They are the only thing that stands between us brewers and the accountant-made beer from Asahi and Kirin.

Having said that, some breweries are just nuts with their pricing. Ok, they're 500ml cans but a 4-pack at Fortitude Brewing for 52 bucks is a little steep. Get real fellas. Saw a Brit UPA in a champagne bottle at an Uncle Dan's or a 1st Choice and they wanted over 35 bucks or something ridiculous for it. Tellem they're dreaming. 

I know they have huge costs and all and they're not getting rich any time soon but somewhere there is a limit to what people are willing (and able) to pay. 

Correct AK. Well said. That's why these guys have to really pay attention to the numbers and do their research before committing to these ventures in my humble opinion.

As you rightly point out, the consumer is only ever going to pay so much for a beer product - no matter how decent it is.

 

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  • 4 months later...
  • 3 weeks later...
Posted (edited)
3 hours ago, Hoppy81 said:

Another one down.

Screenshot_20240313_073353_Facebook.thumb.jpg.d3eb085b3b5fa46bcddabe2024e67822.jpg

 

It is a sad day when a brewery has to close, sometimes you have to wonder what caused it, normally it is mismanagement, lack of trade, trying to expand too quick by overspending & over committing to plant etc.

Of course, there are many other possible reasons but maybe others should take note & take stock of their own situation to keep aware of the possible pitfalls.

Edited by Classic Brewing Co
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  • 2 weeks later...
4 minutes ago, ben 10 said:

WTF????

 

Ouch to all of this.

So you either need to be small and niche or go big and sell.

Yeah, or perhaps some need to stop expanding past their means? Just reading about Black Hops, they were looking at opening a 4th venue, surely you can realise when your business can't expand... Now the creditors will lose a sh**load and possibly Black Hops will continue on, but surely these breweries need to take some sort of ownership and stop at a certain point.

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25 minutes ago, Hoppy81 said:

Yeah, or perhaps some need to stop expanding past their means? Just reading about Black Hops, they were looking at opening a 4th venue, surely you can realise when your business can't expand... Now the creditors will lose a sh**load and possibly Black Hops will continue on, but surely these breweries need to take some sort of ownership and stop at a certain point.

Totally agree mare, they get greedy instead of concentrating on what they have got.

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Gotta be brave these days to start a small business. Times have changed, mortgage, food, insurances etc people can't afford to spend up on luxuries all the time. I try to visit my local craft brewery (Six Twelve) when I can for a feed and a few. They've grown well over the last few years and are hopefully going ok. 

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8 minutes ago, Hilltop hops said:

Gotta be brave these days to start a small business. Times have changed, mortgage, food, insurances etc people can't afford to spend up on luxuries all the time. I try to visit my local craft brewery (Six Twelve) when I can for a feed and a few. They've grown well over the last few years and are hopefully going ok. 

Onya HH, I believe that is the way every bit helps,  bugger the pubs with their megaswill. 

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10 minutes ago, Classic Brewing Co said:

Onya HH, I believe that is the way every bit helps,  bugger the pubs with their megaswill. 

Its homebrew, Coopers or SA craft beers for me. That megaswill isn't much cheaper anyway. 

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2 minutes ago, Hilltop hops said:

Its homebrew, Coopers or SA craft beers for me. That megaswill isn't much cheaper anyway. 

I agree, it's easier,  cheaper & more satisfying drinking your own, trying new releases or visiting the local craft Breweries than sitting around adding to Coles/Woolworths fortunes in one of the pubs they have taken over.

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