Article on the struggle of independent craft breweries in Australia

[Tricky Micky]

On 1/26/2024 at 7:51 PM, iBooz2 said:

I have had many people over the last year or so wanting to buy kegs of my beers, but I respectfully decline due to possible tax implications.

@iBooz2 Al, always open to a bit of bartering mate. 

[NBillett09]

43 minutes ago, Tricky Micky said:

@iBooz2 Al, always open to a bit of bartering mate. 

If you trades a service or other goods for the keg I wonder whether that dodges any tax implications to a degree? Harder to tax for arguments sake a couple boxes of oranges for a keg… what are the ATO gonna do, put 6 oranges in the bank?

[Otto Von Blotto]

It's too expensive for me in my current situation to be going and buying these sorts of beers, whether it's going there and having a glass or two or picking up a six pack (or these stupid four packs) to try at home. I get more value for money going and playing a competition at golf and having a drink after it. 

Plus there's the ridiculous beers that they come up with to try to be different. I can't speak for everyone of course, but I would rather drink a well made pale ale, lager, IPA or a dark style or whatever than some licorice all sorts nonsense. 

[Classic Brewing Co]

30 minutes ago, Otto Von Blotto said:

It's too expensive for me in my current situation to be going and buying these sorts of beers, whether it's going there and having a glass or two or picking up a six pack (or these stupid four packs) to try at home. I get more value for money going and playing a competition at golf and having a drink after it. 

Plus there's the ridiculous beers that they come up with to try to be different. I can't speak for everyone of course, but I would rather drink a well made pale ale, lager, IPA or a dark style or whatever than some licorice all sorts nonsense. 

I agree, 4-packs & the shrinking of volume in these stupid cans/bottles of fruit salad or whatever flavour they can think of is pathetic. The prices are also ridiculous. 

I stick with the basics when I need to buy beer, better value. 

[Hoppy81]

On 1/31/2024 at 5:47 PM, Otto Von Blotto said:

Plus there's the ridiculous beers that they come up with to try to be different. I can't speak for everyone of course, but I would rather drink a well made pale ale, lager, IPA or a dark style or whatever than some licorice all sorts nonsense. 

 agree with everything you have said, i hardly buy beers now as most new beers are extremely average or just some weird concoction of flavours and ends up in the sink at $10 a can/bottle.

[ChairmanDrew]

If you're talking about the fancy stuff, something I've noticed is you can get something decent in a 330ml can for usually $4-5. But then when it gets to 440ml cans they start at $8, 9 10+...

As much as I'd like to support micro breweries, that's just ridiculous. I used to sometimes go direct to the breweries and fill a rigger for slightly better value, but even then $$$ is a bit too tight these days for such luxury.

[Classic Brewing Co]

It looks like we have another Craft Brewery in trouble.

https://www.msn.com/en-au/news/australia/aussie-craft-beer-company-goes-into-voluntary-administration/ar-BB1i8qB1?ocid=BingHp01&cvid=cba959d982ec48198d762d7d8bd595e5&ei=10#:~:text=Follow-,Aussie craft beer company goes into voluntary administration,-Story by Miriah

Let's hope they can pull out of it.

[Hoppy81]

Never thought this one would go into voluntary administration. 

https://craftypint.com/news/3361/big-shed-brewing-appoint-voluntary-administrators?fbclid=IwAR2VsfuLKhm8PEsc-XqqT5V8cT7yguE9pm029RLakDoCOAN3TM2LYHh9cy8

[Classic Brewing Co]

16 minutes ago, Hoppy81 said:

Never thought this one would go into voluntary administration. 

https://craftypint.com/news/3361/big-shed-brewing-appoint-voluntary-administrators?fbclid=IwAR2VsfuLKhm8PEsc-XqqT5V8cT7yguE9pm029RLakDoCOAN3TM2LYHh9cy8

Wow, I  wouldn't have either. 

[Classic Brewing Co]

45 minutes ago, Classic Brewing Co said:

Wow, I  wouldn't have either. 

A little more on this.

https://theshout.com.au/hawkers-beer-and-big-shed-brewing-enter-voluntary-administration/

[Hilltop hops]

On 2/14/2024 at 4:01 PM, Classic Brewing Co said:

A little more on this.

https://theshout.com.au/hawkers-beer-and-big-shed-brewing-enter-voluntary-administration/

Another article- they're giving it a crack to stay afloat, got mainstream media involved. 

https://amp.nine.com.au/article/f53d9739-9d0e-44f2-b97d-194e2c39fc6a

[Classic Brewing Co]

3 hours ago, Hilltop hops said:

Another article- they're giving it a crack to stay afloat, got mainstream media involved. 

https://amp.nine.com.au/article/f53d9739-9d0e-44f2-b97d-194e2c39fc6a

I hope everyone supports them, great beers, great place.

[iBooz2]

20 hours ago, Hilltop hops said:

Another article- they're giving it a crack to stay afloat, got mainstream media involved. 

https://amp.nine.com.au/article/f53d9739-9d0e-44f2-b97d-194e2c39fc6a

Hopefully it ends up well for these guys but now having a receiver/manager appointed the Big Shed have now automatically increased their overheads by about 30K$ - 50K$ per month (could be a lot more).  The receiver/managers get paid first each month and then, hopefully, possibly some of the rest of the creditors.  This makes it even harder to dig themselves out of big hole which is made that little bit deeper by the receiver/manager liability itself.    Probably better than the directors getting pinged for trading whilst insolvent.

A pattern I have seen in a lot of businesses that I have had dealings with over many years, is that they only focus on the money flowing in and not keeping an eye on the liabilities that are out of view, and slowly building up.  They should be allocating that cash inflow to, rather than drawing bigger salaries or wages and buying up big on equipment in the hope that business will get better next week and can pay it off.

When I was in business, I had a hard and fast rule:  Pay my creditors first and myself last.  If there was not enough left for me then that meant I had been either lazy or unlucky (or both). 

I would finish every month off with zero liabilities and hope that there was something left over for me.  Makes you work a lot harder, smarter and thrifty-er that's for sure.

[iBooz2]

On 1/25/2024 at 8:53 AM, GregT5 said:

Pirate Life should be doing OK given who owns them. They have the financial backing that a lot of the smaller independent breweries don't have. 

I always look for craft breweries when I am out and about.  There beers are usually better than mainstream beers but the price is getting a bit hard to accept.

One of our local pubs had Pirate Life South Coast Pale Ale on special on tap but it was still a bit cheaper to drink Coopers. 

Pirate Life have just opened up a big beer hall and foodie joint in South Melbourne VIC.  I don't know if they classify as a craft brewer though as they are actually owned by Carlton and United Breweries (aka Asahi).  They will still be brewing their beers in HQ Adelaide at this stage.

Edited March 12 by iBooz2