Big Shed Brewing will trade on after striking a deal with creditors

Big Shed Brewing has emerged from administration after striking a deal with its creditors, with its owners thanking customers and suppliers for their support.

Jason Harris and Craig Basford from Big Shed Brewing.

Big Shed Brewing will trade on after its creditors agreed to a deal to keep the Royal Park brewery afloat, with its directors saying support from the public, suppliers and stockists has been “humbling beyond measure’’.

Big Shed was placed in administration in February with debts of about $4.2m, including more than $1.3m which owners Jason Harris and Craig Basford had loaned back to the business in a bid to keep it operating.

The craft brewer, which has been in business for more than two decades, moved into new premises on Old Port Rd just before the pandemic hit, and has been operating in the red ever since.

The directors put a proposal to creditors under which they would receive about 7c in the dollar over the next year or so, which the creditors voted to accept at a meeting held this week.

Mr Harris and Mr Basford thanked their supporters in a lengthy social media post, saying that a month ago “it felt like the floor had fallen out of our lives’’.

“The response from the public, our wholesale partners, and suppliers since then has been humbling beyond measure,’’ they said.

“That brought with it the obviously needed financial boost but equally an emotional one.

“We knew we had a fight, but we knew we weren’t fighting alone and this became our rallying cry.

“Even in our darkest moments we knew we had something that was worth fighting for, because the public told us it was worth fighting for. In bars, bottle shops and festivals, people were cheering for us, and it meant the world.’’

The pair put out a call for customers to support local brewers and local businesses generally.

“While our battle isn’t over, and the seas are still stormy; we have righted the ship and can face those headwinds with confidence,’’ they said.

“We ask that you keep supporting us, keep supporting local independent beer and local business generally as it’s a tough time for us all and we all want to be there for our community long into the future.’’

It has been a tough time for smaller brewers, with several companies going into administration nationally over the past year.

Earlier this week the Independent Brewers Association issued a plea to the Federal Government for more equity in the way alcohol is taxed, with current arrangements taxing beer at up to 10 times the rate for wine.

The association’s chief executive Kylie Lethbridge called for the indexation on the beer excise to be frozen for two years.

“We’re happy to pay what we’ve got but please don’t put it up,” Ms Lethbridge said.

“We’re not looking for massive cash bailouts, just the tweak of a number.”

Research commissioned by the Brewers Association of Australia shows that the tax on a standard drink of cask wine is $0.06, a $20 bottle of premium wine is $0.40, and a full-strength beer would be $0.58.

This is because beer and spirits are subject to an excise that is raised twice a year in line with inflation, while wine is taxed at 29 per cent of its wholesale value – a rate that has remained unchanged since it was introduced in 2000.