Popular Melbourne brewery announces closure

A popular brewery is going into liquidation and shutting down forever after it couldn’t scrape its way out of a financial black hole.

A popular brewery is going into liquidation and shutting down forever after it couldn’t scrape its way out of a financial black hole.

Overnight, Victorian-based Deeds Brewing announced to its 23,000 followers that the venue had made the “difficult decision” to wind up the business after failing to find a buyer.

The “proudly independent” and award-winning Deeds Brewing operates a brewery, distillery and canning and bottling facilities and also its own kitchen and taproom in the southeast Melbourne suburb of Glen Iris. It has been a registered business since 2012.

“Over the last 12 years, we’ve poured our hearts into every brew, every interaction, and every moment shared with you,” the Deeds team wrote.

“Our hearts are broken.”

Its collapse will leave 50 staff members without jobs at the company.

“We’ll deeply miss our dedicated staff, who have become like family to us, and our incredible fans who’ve stood by us through thick and thin throughout the years,” Deeds added.

Deeds Brewing announced its closure on Tuesday night.

Deeds Brewery is still trading for the next few days and they are offering customers a 30 per cent discount.

“This will be your last chance to stock up on our beers and raise a final glass to Deeds Brewing,” the company wrote.

Deeds also assured the community that every customer order would be honoured.

“Any orders that have been placed via our online store will be fulfilled, no need to worry if you have ordered in the last few days.”

The post generated an outpouring of support with more than 1000 reactions.

Local MP Michael O’Brien, the member for Malvern, wrote that he was “sorry to hear this sad news”. “You’ve been a great addition to our community over 12 years. Thanks for everything and best wishes for the next adventure,” he added.

Another brewery business, Beer Cartel, commented on the announcement: “You are absolute legends of the Australian craft beer scene. Seeing this breaks our hearts knowing the blood, sweat and tears you put into every beer”.

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Deeds Brewing has been in business for 12 years.

In March, news.com.au reported that the four companies which came under the Deeds Brewery umbrella had gone into administration.

Those four businesses are Deeds Group Pty Ltd, Deeds Taproom Pty Ltd (trading as Deeds Taproom and Kitchen), Deeds Brewing Company Pty Ltd, and Future Proof Distilling Pty Ltd.

At the time, the appointed administrators, Glen Kanevsky and David Orr, from accounting firm Deloitte’s turnaround and restructuring department, told news.com.au they were looking to urgently sell or recapitalise the business.

It comes as breweries across Australia are facing the “perfect storm” of factors which is bringing them to their knees.

Deeds Brewing is far from the first to have to make the sad decision of appointing external administrators.

50 staff worked for the group of companies.

Beloved Brisbane brand Ballistic Beer Company set the scene for the struggling brewery sector early last year after it was forced to call in administrators. It was able to trade its way out of disaster and avoided going into liquidation.

Since then, a number of others have also gone under.

In February, a popular South Australian business, Big Shed Brewing, went into administration after 20 years in business.

It followed Hawkers Brewery also falling into administration earlier that month, which was one of Melbourne’s largest manufacturers and distributors of craft beers.

Online alcohol retailer BoozeBud collapsed in May last year, announcing via its website it would no longer be taking orders.

The Wayward brand based in Camperdown in Sydney’s inner west, voluntarily put the popular business into administration on January 2, owing approximately $2 million to trade creditors, statutory creditors and shareholders.

Wayward owner Peter Philip said conditions affecting smaller independent brewers were a “perfect storm” and that “consumers are not supporting us to the extent that we need”.

Administrator Atle Crowe-Maxwell from DBA Reconstruction and Advisory added that the business was struggling under the weight of cost of living pressures and the high levels of government excise imposed on beer.

“This whole industry has just been smashed by excise,” he said of the government tax, which accounts for up to a third of the cost of beer.

The tax has been widely criticised for contradicting the Federal Government’s $225 million tax relief for small breweries and distillers as part of the 2021-22 federal budget.

Two Japanese companies, Kirin (owner of Lion) and Asahi (owner of Carlton United Breweries, also known as CUB) are actively acquiring independent breweries in Australia.

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Originally published as Popular Melbourne brewery announces closure