How Mackay council plans to make Sarina Sugar Shed profitable

The Sarina Sugar Shed has been unable to return a profit in 15 years of operation. Find out how the council plans to sweeten the situation.

While the Sarina Sugar Shed has proven it can produce sellout liquor, its failure to turn a profit in 15 years has landed it in a sticky situation.

Now Mackay Regional Council is brewing a plan to free the facility from its unprofitable trappings with a review under way to possibly expand the distillery.

Mayor Greg Williamson said the shed achieved a tremendous $830,303 in income over the 2020-21 financial year including ticket and retail sales but it still made for an overall loss of $170,000.

Farming equipment make part of the tours available at the Sarina Sugar Shed.

“The facility does not return a profit to council, although the financial performance has improved considerably since reopening after the Covid closure in 2020,” Cr Williamson said.

“Council is currently undertaking a pre-feasibility study into the Sugar Shed’s distillery operation as there is potential for growth in this part of the operation.

“But there has been no discussion at this stage, or any formal consideration, regarding the potential sale of the facility, the distillery or the tour operation.”

The council earlier this year spent $100,000 on consultants to review the business but Cr Williamson said they were yet to receive back any insights.

“Any findings will be discussed, and councillors will be engaged in decision making,” he said.

Juanita Mooney hosting a cooking demonstration at the Sarina Sugar Shed with marinated wagyu skirt and chargrilled corn with Asian-style mango chutney during wagyu Week. Picture: File

The former Sarina Shire Council first opened the facility in 2006 — at an unknown cost — with support from government funding and sugar industry donations including from Plane Creek Mill and Sarina cane farmers.

Documents stated the council’s strategy was to make the Sugar Shed a “sustainable tourism facility” that provided tourism products and experiences to “promote the region’s heritage”.

The entrance of the Sarina Sugar Shed, a now iconic tourism facility in the Mackay region.

A Development Services September update stated 2021-22 ticket sales were tracking ahead of the annual target of $200,000 with direct bookings via Mackay Tourism making up for a slight monthly drop in the percentage of tickets bought online.

“Alcohol sales also improved as a percentage of overall revenue due, in part, to the release of the Sugar Shed Classic rum,” the update stated.

The classic was especially released for Father’s Day with a SB15 three-year rum also released in September for the shed’s 15th anniversary, with a special five-year rum scheduled for a November rollout.

The update added the facility had achieved a third of its annual revenue target with the first two months of the financial year despite facing higher expenses due to increased casual wages to cover staff leave and “efficiently service visitors”.

Cr Williamson said the current budget’s $65,000 allocation for building improvements to the Sarina Sugar Shed aligned with the council’s asset maintenance role.