In a shocking turn of events, Sydney Beer Co, a beer company co-owned by former Australian cricketer Brett Lee and actor Matt Nable, has gone into administration.
Despite raising $6 million to expand into the US market, the company has struggled to stay afloat in the competitive retail environment.
What Went Wrong?
According to documents filed with the Australian Securities and Investments Commission (ASIC), Sydney Beer Co has been facing significant challenges in recent times.
The company had been selling its beers nationally and exporting to Malaysia and the US, but plummeting beer sales due to high prices and a cost-of-living crisis have taken a toll on the business.
A Premium Lager with a Local Twist
Sydney Beer Co's goal was to deliver a "world-class lager that Sydneysiders are proud to call their own."
The company's website stated that they wanted to provide a locally owned, premium alternative to mainstream Asian and European brands.
However, it seems that this vision was not enough to save the company from financial struggles.
The Impact of the Beer Excise
The collapse of Sydney Beer Co comes after Prime Minister Anthony Albanese announced that the beer excise would be frozen for the next two years.
While this move is intended to support small and medium local businesses, not everyone is convinced that it will make a significant difference.
Former Australian batsman David Warner has slammed the decision, saying that the beer excise is "too late" to make an impact.
What's Next for Sydney Beer Co?
RSM Australian partners Brett Lord and Richard Stone have been appointed as administrators of the business and will meet with creditors on March 19.
It remains to be seen what the future holds for Sydney Beer Co, but for now, it seems that the company's dreams of delivering a world-class lager to Sydneysiders have been put on hold.
