Popular brewery on brink of collapse as administrators called in, 50 jobs in jeopardy

A popular Australian brewery is on the brink of collapse as restructuring practitioners urgently look for a buyer or a way to turn its fortunes around.

A popular Australian brewery is on the brink of collapse as restructuring practitioners urgently look for a buyer or a way to turn its fortunes around.

Four businesses that formed the group of companies behind Victorian-based Deeds Brewing went into voluntary administration on Wednesday.

The “proudly independent” Deeds Brewing operates a brewery, distillery and canning and bottling facilities, headquartered in Melbourne.

Deeds Brewing had also ventured out into a more customer-facing business, opening its own kitchen and taproom in the southeast Melbourne suburb of Glen Iris.

Its recent plunge into administration leaves the fate of all 50 of its staff members hanging in the balance.

Deeds Brewing went into voluntary administration on Wednesday. Picture: @deedsbrewing/Instagram

Deeds Brewing has 50 staff members. Picture: @deedsbrewing/Instagram

The 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.

The award-winning brewery had more than 23,000 followers on Instagram but has not mentioned the recent administration appointment to its fans.

Deeds Brewery had a presence in both the retail and wholesale sides of Australia’s craft beer market.

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

“It’s very early days in this process as we take over management of the business and commence a review of its financial position,” Mr Kanevsky said in a statement to news.com.au.

“For now, it is a case of business as usual and continuing to trade while we explore urgent sale or recapitalisation options.”

They wouldn’t indicate the assets or liabilities of the business.

The first creditors meeting is taking place on March 25.

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The business had also opened up a bar and kitchen serving its products. Picture: @deedsbrewing/Instagram

Other brewers have also had to call in administrators in recent months. Picture: @deedsbrewing/Instagram

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.

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, which generated an outpouring of sadness from the Australian public. 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.

Last month, 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 in February, 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 brewery on brink of collapse as administrators called in, 50 jobs in jeopardy