Administrators appointed to Lotus Beer – trading as Valhalla – in North Geelong

Another craft brewery business in Geelong has gone into administration, citing cost of living pressures as the key reason.

Scott Hunt at Valhalla’s Federal Mills site. Picture: Brad Fleet.

A popular Geelong craft brewery has become the latest casualty of mounting cost of living pressures, with the future of the business in jeopardy.

Lotus Beer Co, which traded as Valhalla, once operated two sites – one in Union St in the CBD and more recently opening at the Federal Mills in North Geelong.

But in a major blow, administrators were appointed on Monday.

Director Scott Hunt, who was one of three full-time employees, said consumers were spending noticeably less as the strain on household budgets continues to grow.

“People are not going out like they used to and we’ve seen a reduction in income,” he said.

“I think that’s just a legacy from the (Covid) lockdowns.

“Everything is going up in price – rent, insurance, cost of ingredients, cost of electricity, cost of fuel – everything’s gone up.”

Scott Andersen and Matthew Kucianski of Worrells were appointed administrators.

An urgent assessment of the viability of the business would be conducted to determine whether it was feasible to continue trading.

“This is a difficult time for everyone involved, and we will do our utmost to support all stakeholders throughout the process,” Mr Andersen said.

“Our team is committed to ensuring that the process is conducted in a professional and transparent manner, and that all parties are kept informed of developments as they arise.”

Mr Andersen said the administration eventuated due to “rising cost of living pressures which ultimately led to a reduced demand for the company’s products while it was also experiencing increased costs of production in operating its businesses”.

Mr Hunt expressed his gratitude to those who supported Valhalla.

Valhalla’s Scott Hunt. Picture: Brad Fleet.

“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.

“A lot of people loved what we have done, they loved the brand, they loved the beers.

“A lot of our customers have become good friends, we’re really pleased and proud of what we have done.”

Valhalla closed its Union St site in Mid-June after five-and-a-half years.

At the time, Mr Hunt said: “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”.

The Valhalla Brewhouse in North Geelong. Picture: Brad Fleet.

Worrells will launch an expression of interest process that could result in the sale of the business or a recapitalisation.

Mr Anderson said he was hopeful that the right buyer or investor could be found.

In May, fellow craft brewer Sou’West Brewery shut its door immediately after going into administration.

Great Ocean Road Brewing, owned by mates Matt Shortal and Mick Ranger, has since announced they will take over the site in September.

Originally published as Administrators appointed to Lotus Beer – trading as Valhalla – in North Geelong