Record $2.2m crowd-funding win by Gold Coast-based Black Hops Brewing underscores momentum of craft beer sector

A Queensland craft brewer has attracted millions of dollars from thirsty investors in a positive sign that the $2bn industry is losing none of its momentum.

Black Hops’ Dan Norris, Michael McGovern and Eddie Oldfield toast their success. Picture: Glenn Hampson.

Independent brewers of craft beer are in a sweet spot right now.

While sales of mainstream brews rose slightly in 2021 after about 15 years of steady decline, the trend lines keep heading north for beer makers unaffiliated with the likes of giants such as Lion or Carlton & United.

The latest data from the Independent Brewers Association shows that decade-long growth in the $2bn sector has continued for smaller operators, in both volume and market share.

Independent brews accounted for 10.4 per cent of total market volume in the last financial year, up nearly 2.5 per cent.

The share of total beer revenue also reached a record high of 14.1 per cent, up almost 3.5 per cent.

From left: Eddie Oldfield, Dan Norris and Michael McGovern

The IBA represents about 625 breweries nationwide, and chief executive Kylie Lethbridge says about 150 more are set to open.

She said the industry had remained resilient in the face of pandemic-related challenges, including a severe skills shortage and supply chain bottlenecks.

Despite these hurdles, the sector’s momentum continues to pique the interest of investors, who last month tipped cash into backing Gold Coast-based Black Hops Brewing.

The award-winning outfit pulled in $2.2m in just 24 hours, setting a national record for reaching the largest crowd-funding goal for a brewery.

By contrast, it took them six days to hit a $400,000 target back in 2019.

The latest cash infusion will allow the company to ramp up capacity at its main production facility in Biggera Waters, according to co-founder Dan Norris.

“People really connect with our story and our brand. The beer quality is very good and people like to support a local independent,’’ he said.

The capital raising will mainly be ploughed into a new $3m state-of-the-art packaging line that will lift the maximum number of cases per day from 1500 to 7000.

A 24-head rotary canning line imported from Italy is a key feature of the upgrade, which will see a doubling of the existing floor plan.

Mr Norris expects the bulk of the work to be completed in about a month, with full operation phased in over subsequent weeks.

There are also plans to open a new distillery onsite later this year, set to trade under the banner of Pine Ridge Distillers. It’s expected to churn out a range of spirits, including gin, whiskey, vodka and rum.

Mr Norris, along with his co-owners Eddie Oldfield and Michael McGovern, launched Black Hops in a backyard in 2014 when they created an inaugural batch of eggnog stout.

Today, in addition to the Biggera Waters plant, they also operate a brewery and taproom in both Burleigh Heads and Brisbane. Distribution deals with Dan Murphy’s and BWS have given the beverages national exposure, with numerous awards making the brand a favourite among beer connoisseurs.

Black Hops has won “champion brewery’’ recognition by peak industry groups three times since 2018. Last month six of its IPAs and pale ales made it on to the Great Australian Beer Spectacular’s (GABS) Hottest 100 craft beers list.