Iconic Sydney brewery calls last drinks, shuts forever

A beloved Aussie pub in the heart of Sydney has shut down, adding to a growing pile of defunct brewers across the nation.

A beloved Aussie pub in the heart of Sydney has shut down, adding to a growing pile of defunct brewers across the nation.

A beloved Aussie pub in the heart of Sydney has shut down, joining a growing list of defunct brewers as the brewery industry’s woes deepen.

At the weekend, Atomic Beer called its last drinks and announced it was shutting permanently.

Atomic Beer, based in the Sydney inner west suburb of Redfern, said they had made the decision with a “heavy heart”.

It operated as both a brewery and a taproom. It has been a registered business since 2019 and has been operating since 2020.

“It’s been a pleasure Redfern, join us for a final froth and a nod to the good times,” the pub signed off on its social media.

On its website, the business drove the message home, writing, “Atomic Redfern has sadly poured it’s (sic) final round of beers.

“Thanks for your support over the last few years and for bringing the excellent vibes to Redfern with us! We hope to get a chance to serve you again in the future!”

Atomic Beer has shuttered its doors for good.

Atomic’s shock closure generated an outpouring of support from its fans.

“Best bar in Sydney”, one person lamented, while another commented, “Very very sad to hear this.”

“Will you still be making beer from somewhere else?” asked another, prompting a reply from Atomic Beer.

“Afraid not sorry, there will not be any more Atomic beer produced,” their response read.

News.com.au has contacted Atomic Beer for further comment.

Unfortunately, the brewery has succumbed like many others in the industry as a perfect storm has forced others to collapse in quick succession across the country.

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Atomic Beer opened in 2020.

A number of other independent breweries have closed down or gone into administration or liquidation in the past year, including Brisbane-based Ballistic Beer Company, Adelaide business Big Shed Brewing, Melbourne-based Hawkers Brewery and Deeds Brewery, and the Wayward brand and Akasha Brewery, both from Sydney.

ASX-listed juggernaut Mighty Craft also went bust despite once being valued at $1.8 million.

Last month, ready-to-drink vodka maker Billson’s Beverages plunged into administration, with 100 employees losing their jobs. Billson’s was established in 1865.

Other brewing businesses have also gone bust.

Nick Boots, an industry consultant who was previously the general manager of popular Byron Bay brewery Stone & Wood, said there are a number of reasons why these breweries have no choice but to shut down.

The government-imposed tax excise is the largest cost for every brewer, but during the Covid-19 pandemic, the Australian Tax Office (ATO) allowed these businesses to defer their payments. Now, the ATO is demanding this be paid back to them.

Brewers are also being hit with a double whammy because the excise tax rises twice a year in line with inflation, which is higher than it’s been in decades.

Independent brewers are also finding it harder to compete against the biggest players in the industry.

The two major players – Carlton & United Breweries (CUB), which makes VB and Carlton Draught among others, and Lion, which produces XXXX and Tooheys – command as much as 90 per cent of the beer market, posing another problem for small brewers.

“The big guys can brew beer for half the price of the small guys,” Mr Boots said. “They have a tax advantage, they’ve got amazing efficiencies. They can produce beers more cheaply and sell it more cheaply.”

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