Major Australian beverages brand collapses

Staff members were let go on the spot after the company couldn’t prevent a collapse despite making $120 million last year.

A crisis-hit industry has seen another company collapse – despite it making $120 million last year – with 50 staff members sacked on the spot.

The owners of craft brewer and ready-to-drink vodka maker Billson’s Beverages announced they were “devastated” to put the business into voluntary administration.

The historic brewery was established in 1865 and is currently the number one Victorian attraction on TripAdvisor.

News.com.au understands there were approximately 100 employees working for Billson’s Beverages when administrators were appointed but 30 were made redundant on the spot, while a further 20 casuals were told they were no longer needed.

The company had already slashed 100 staff members earlier in the year in a move to cut costs.

Rob Smith and Matthew Hutton from McGrathNicol have been appointed as administrators.

Billson's’s Beverages, a ready-to-drink vodka maker and craft brewer, from Victoria has collapsed. Picture: Facebook

They are seeking to sell the business with Mr Smith telling news.com.au the company was built from zero to a multimillion-dollar business.

“This business had extraordinary growth from very little revenue, as in sub $1 million in 2018, to more than $120 million last year and it was profitable growth,” he said.

“With that sort of significant growth from almost nothing, there does come growing pains and mistakes along the way but that is extraordinary growth.

“That means mistakes can be made and there can be learnings. When all of sudden you have macro issues like significant cost of living pressures that impact demand then it can be hard to adjust quickly. It’s grown so quickly and demand has eased so quickly because of cost of living pressures its been very hard to adjust fast enough.”

However, the venue and its website remain open and continue to trade, while its ready-to-drink cans are sold in Dan Murphy’s, BWS and Liquorland. It also has a range of cordials sold in IGA supermarkets.

The brewery was on a historic 150 year old site Picture: Facebook

The couple who owned the business, Nathan Cowan and his wife Felicity, spoke about the “excruciatingly difficult decision” to place the business into voluntary administration.

“Over the course of seven years, everyone’s hard work and passion has resulted in overwhelming support by people all over Australia and some pretty incredible business growth,” they wrote on social media.

“Unfortunately that growth masked several mistakes we made along the way as our systems and processes failed to keep up. We’re ultimately responsible for these mistakes and we know that we have let people down. We are devastated and sorry.

“We are shattered by the stress this decision will undoubtedly cause our team, suppliers, customers and fans. We’ve tried everything imaginable over the past six months to avoid this situation, including restructuring on two occasions, however we now believe this to be the necessary step for survival.”

It also made cordial. Picture: Facebook

In a statement, Mr Cowan added that the cost of living pressures, working capital challenges, the rising costs of energy, freight, ingredients and raw materials, and the third highest spirit tax in the world all contributed to the demise of the business.

“The inevitable restructure will impact not only the team, but the community of Beechworth and the broader region. I’m ultimately responsible for the health of the business and to have this happen on my watch is crushing,” he said.

“We weren’t able to predict the speed nor the magnitude of the shift in the market conditions. I’m devastated.”

The Cowans added the brewery had stood for over 100 years and “has undoubtedly faced many other perilous times”.

“The challenges we’ve encountered in 2024 have been vast and incomprehensible in scale. We will do everything possible to work through this so Billson’s can emerge more resilient as a business and ready to take on another century,” they said.

“We know how difficult the current environment is out there for everyone. With so many family businesses teetering on the edge, any support you are able to provide your local businesses, in any way at all, will mean more now than ever.”

Cost of living pressures, high taxes and an explosion in expenses were part of its demise. Picture: Facebook

They added that “despite their many shortcomings” they would never give up.

Mr Smith he while it was a difficult day for the owners and staff, he was optimistic about the prospects of selling Billson’s Beverages.

“We will be calling for expressions of interest next week,” he noted. “I think it will be relatively quick but orderly. We do expect a lot of interest and already had a lot of interest in the business.”

A statutory meeting for creditors will be held on August 12.

Billson's’s Beverages is one of many craft brewers to go under Picture: Facebook

It’s been a torrid time for the craft brewing industry.

The casualty list has piled up this year as many failed to dig themselves out of a financial black hole including the ASX- listed juggernaut Mighty Craft, Victorian-based Deeds Brewing, Alchemy Brewing Co which lamented a “rough ride” and award-winning Queensland brewer Black Hops.

Others like Sydney-based Malt Shovel Brewery announced they were shutting down for good blaming a shrinking beer drinking market and the cost of living crisis, while Matilda Bay Brewpub’s closure was attributed to rising costs including wages, energy bills, materials and taxes.