Another Aussie brewer needs saving as Geelong beer company enters administration

Craft beer brewers in Australia have been hit hard by the cost-of-living crisis and another popular business has entered administration.

An award-winning Aussie brewer has gone into voluntary administration, leavings its owners devastated but hopeful the business can continue.

Lotus Beer Co, which runs Valhalla Brewing in Geelong, has become the latest craft beer brand to collapse amid significant challenges for the industry.

An ASIC notice published on Monday states that administrators have appointed Worrells duo Scott Andersen and Matthew Kucianski.

The first meeting of creditors will be held next week.

News.com.au has contacted the company and administrators for comment.

The Geelong Advertiser has reported Lotus Beer Co director Scott Hunt was “devastated” that it had come to this point.

Scott Hunt, the director of Lotus Beer Co. Picture: Brad Fleet

Mr Hunt told the paper the rising costs of rent, ingredients, power and a drop in people spending money in tough economic conditions had been noticed.

“We are devastated this has happened, we have poured our heart and soul and many years of hard work into this, so to say we are devastated is an understatement,” he said.

“We are extremely proud of what we have produced up until this point..”

Mr Scott remained hopeful a buyer or new investor could be found.

Last month, Valhalla told its followers on social media that it was selling its signature Union St taproom.

“It has become very clear over the past few months that we need to dedicate all our time, effort and resources into our new North Geelong brewery and brewhall and so it is time to simplify and provide a new owner with the opportunity to give our taproom a new lease on life,” the post read.

The owners clarified the taproom would stay open until a buyer for the site was found.

Valhalla opened two venues. Picture: Peter Ristevski

Valhalla has been a popular brewer in Geelong. Picture: Peter Ristevski

Valhalla also has a 200-person beer hall in North Geelong, which opened in 2023.

Australia’s craft brewing scene has been hit with a series of collapses in the past 12 month, with experts blaming rising overheads.

Administrator Atle Crowe-Maxwell from DBA Reconstruction and Advisory told news.com.au this year that businesses were struggling under 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,” he said.

Deeds Brewing has closed its doors.

Melbourne brewer Deeds announced in May it was closing after going into voluntary administration, leaving 50 people out of work.

It followed Hawkers Brewery, which also fell into administration earlier that month and 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.

Wayward in Camperdown, Sydney also voluntarily put the popular business into administration in January, owing approximately $2 million to trade creditors, statutory creditors and shareholders.

Fellow Sydney brewer Akasha also appointed administrators in May after almost nine years in business.

Japanese beer powerhouses Kirin and Asahi have acquired several high-profile formerly independent Australian beer companies in recent years.