Melbourne craft beer brewer Kaiju calls in administrators

Award-winning Melbourne brewer Kaiju has called in administrators, becoming the latest casualty of a national craft beer bust.

Award-winning Melbourne craft beer brewer Kaiju has entered administration. Picture: Tony Gough

Award-winning Melbourne craft beer brewer Kaiju has entered administration, becoming the sector’s latest casualty.

South East Brewing Company, which trades as Kaiju Beer, is located in Dandenong South in Melbourne’s southeast.

Insolvency expert Atle Crowe-Maxwell of DBA Advisory was appointed administrator on Wednesday morning, a notice published on the ASIC website shows.

The Herald Sun understands the owners are likely to put forward a rescue plan to creditors and undertake a corporate restructure.

The business is looking to trade as usual and keep all current workers employed, it’s understood.

The number of, and amount owed to creditors is yet to be determined.

Brothers Nathaniel and Callum Reeves have run the company since 2012.

Co-founder of Kaiju Beer Brewery, Callum Reeves. Picture: Tony Gough

Kaiju was recently awarded as Champion Medium Australian Brewery at the Australian International Beer Awards last year.

“To say this is a huge achievement and an honour would be an understatement. This is the highest honour in the Australian beer industry and one of the highest in the world,” Callum wrote on the company’s website at the time.

Its products are sold at major liquor outlets including Dan Murphy’s and Liquorland.

Kaiju’s decision to call in administrators comes just days after co-founder Callum, who is also the chair of the Independent Brewers Association, warned incoming price hikes for the cost of alcohol would be the final straw for some brewers.

One of the biggest alcohol price hikes in years is expected with the state government’s cash-for-container scheme fee increase and the federal government’s higher alcohol excise hitting at the same time in February.

Callum warned incoming price hikes for the cost of alcohol would be the final straw for some brewers. Picture: Tony Gough

Mr Crowe-Maxwell told the Herald Sun the brewery industry was seeing a “perfect storm” of increasing production costs and a lack of discretionary spending, leading to a number of insolvencies in the sector.

“During the pandemic there was significant brand loyalty to craft breweries because they were giving them deliveries at home and demand was significant,” he said.

“But recovery from Covid has taken everyone longer than expected.

“Breweries have opened tap houses and restaurants and that coincided with a time when people didn’t have money to spend and started to not eat out as much.”

Mr Crowe-Maxwell said the costs of raw materials have gone up “significantly” including the cost of cans.

“It’s such a shame because clearly they are still making quality products and are passionate about their business.”

Mr Crowe-Maxwell was recently appointed to Melbourne’s Bad Shepherd brewery, which undertook a restructure and continues to trade.

It comes after Beechworth drinks maker Billson’s recently entered a rescue deal with Coca-Cola last month, saving the beloved company from liquidation.