The rise of the craft beer industry in Australia has been a great success story, with numerous breweries opening up in various cities and towns across the country.
Unfortunately, not all startup stories are as rosy. The news about a brewery in Geelong recently highlighted the difficulties that small businesses face.
The Queenscliff Brewhouse, which was known for its variety of whiskey, gin, and craft beer, has gone into administration.
This news was a surprise to many, as the facility also had a distillery, a family bistro, and a cellar.
The establishment, which opened in 2016, only lasted for a short time.
Despite its location in Queenscliff, the establishment failed due to the high cost of living and the massive taxes that were imposed on beer. Nathan Deppeler and Scott Andersen were appointed as administrators for the business.
The administrators are scheduled to meet with creditors on October 29. Despite the financial troubles that the brewery has been experiencing, it still continues to operate.
A spokesperson for the Queenscliff Brewhouse noted that the business is still operating normally.
The brewing sector, which supports around 10,000 jobs, faced various issues. Richard Adamson, who founded Young Henrys, accused the Prime Minister of not supporting the industry.
According to Mr. Adamson, the Prime Minister supported the industry when he was in opposition. However, he has since been criticized for not providing relief from the high beer taxes.
Australia is one of the most expensive countries in the world when it comes to beer taxes.
According to the Independent Brewer’s Association of Australia, the industry may not be able to continue in a year without government support.
Over the past year, over 20 microbreweries have already shut down. In addition, the price of a beer in Sydney has increased significantly.
Independent breweries have been struggling due to the dominance of large companies such as the CUB and Lion, which control over 85 percent of the market.
The increasing number of compliance measures and red tape also made it difficult for small businesses to operate. The Queenscliff Brewery’ closure was a grim reminder of the challenges that small businesses face in this environment.