Gold Coast brewery Black Hops teeters on the edge of collapse – here’s why the industry says so many craft brewers are going to the wall

Another Australian brewery is in serious financial trouble, following a series of craft brewers who have gone into voluntary administration – and they all give the same reason for their troubles.

The latest victim is Gold Coast-based Black Hops Brewing, which has gone into voluntary administration due to mounting tax debts.

Like the many other small and medium brewers in the same boat, Black Hops has placed the blame squarely at the Australian Taxation Office (ATO).

“This decision was not an easy one to make, but the path the ATO took with the company has left the company in a position where there was no alternative,” the brewery said in a statement.

Black Hops Brewing was founded in 2015 by friends Dan Norris, Eddie Oldfield and brewer Michael ‘Govs’ McGovern and has since been available nationwide.

Black Hops Brewing was founded in 2015 by friends Dan Norris, Eddie Oldfield and brewer Michael ‘Govs’ McGovern (pictured) and has since been available nationwide

Tony Sutherland, director of Black Hops, said what happened to the ATO was “an absolute tragedy”.

“Just as things are turning around, bureaucracies like the ATO are coming to pick it up – it’s a tragedy,” he told the newspaper. Gold Coast Bulletin.

In a letter to its investors, the company said its beer would continue to be made and sold while it was in the administration process, which is overseen by Deloitte.

The tap rooms will also remain open and serve food during this period.

“So please come around us at this time and support our taprooms and retail sales.” We are grateful that you are part of our continued journey,” the note said.

Since 2015, Black Hops grew from a 2,500-square-foot building to a 6,000-square-foot brewhouse and then to a massive brewery and taphouse in Biggera Waters, after a crowdfunding campaign raised $400,000 from 545 investors.

It sells around a million liters of craft beer each year and has achieved success with national distribution, but financial difficulties have led to it being run on a voluntary basis.

Federal government excise taxes have been a major concern for independent brewers for some time.

‘Excise duties are the biggest problem we face as a sector. We pay the same amount of duty as Lion or CUB,” says Stef Constantoulas, co-founder of Philter Brewing in Sydney. news.com.au.

Two weeks ago, award-winning Deeds Brewing also went into voluntary administration, in what is shaping up to be another terrible year for Australia’s boutique brewers.

The jobs of 50 employees of the Glen Iris, Melbourne-based brewer are at stake, with Deloitte also monitoring the situation.

“It is just an early stage in this process as we take over management of the company and begin a review of its financial position,” Deloitte’s Glen Kanevsky said in a statement.

“For now it is a case of business as usual and continuing to trade while we explore urgent sales or recapitalization opportunities.”

Since the start of the year, small and medium breweries including Big Shed, Hawkers and Golden West have all gone into administration.

They followed other outfits such as Ballistic, Parched, Wicked Elf and Running With Thieves, which collapsed in 2023.

collapsed in 2023.

Black Hops Brewing’s extra-strength French Toast stout (6.8 percent) is pictured

A woman and a man are shown drinking Black Hops Brewing pale ale from cans

The industry claims the six-monthly increase in excise duties has exacerbated the financial problems of small and medium-sized breweries during a prolonged cost-of-living crisis.

David Mansfield and Tim Heenan of Deloitte are the managers of Black Hops Brewing.

“For now, brewery and taphouse operations will continue while we explore urgent sales options,” Mr Mansfield said.

“The East Brisbane tap house will be closed over the Easter holidays.”