A popular brewery that played a “pivotal” role in the craft beer movement is closing its doors for good after more than three decades in business.
Lion, one of the world’s largest drinks companies, will close Malt Shovel Brewery in Sydney’s Camperdown at the end of August.
The brewery is responsible for brewing a number of popular beers including Eumundi, Little Creatures, New Belgium and James Squire.
Staff members have been notified of the impending closure of products to be made at plants in northern New South Wales and Geelong in Victoria.
Lion managing director James Brindley cited rising production costs, cost of living pressures and government excise duties as factors forcing the closure.
The Malt Shovel Brewery in Sydney’s Camperdown (pictured) in late August
The brewery is responsible for brewing a number of popular beers including Eumundi, Little Creatures, New Belgium and James Squire.
“This week we have informed our valued team members at Malt Shovel Brewery of the difficult decision we have made, which is that we propose to close the site at the end of August 2024,” Brindley said in a statement.
‘It has been a difficult time for all players in the Australian beer industry – total volumes have decreased by 100 million liters since 2019, continuing a long-term decline in beer consumption.
“There have also been ongoing cost of living pressures reducing discretionary spending and continued increases in costs such as energy, labor and ingredients, as well as government excise taxes, which are now the third highest in the world “.
Malt Shovel Brewery was first opened in 1988 by independent brewer Chuck Hahn and acquired by Lion in 1993.
The brewhouse soon became the heart of Lion’s craft beer business and played a “pivotal role” in Australia’s craft beer movement.
It comes just three weeks after Asahi, Lion’s biggest competitor, closed its Matilda Bay brewery in Victoria’s Yarra Valley on May 19, citing high costs.
A number of independent breweries have collapsed in recent months following a series of increases in alcohol taxes and operating costs.
Malt Shovel Brewery was first opened in 1988 by independent brewer Chuck Hahn.
Small and medium-sized breweries Deeds Brewing, Big Shed, Hawkers and Golden West have all gone into administration since the start of the year.
They followed other teams such as Ballistic, Parched, Wicked Elf and Running With Thieves that collapsed during 2023.
The Carringbush Hotel, in Melbourne’s inner northwest, has been forced to close its doors after 135 years in business.
Owner Liam Matthews, 47, said he would have to charge $20 a beer to stay afloat amid the “horrendous” costs.
“We’re putting more into the box than ever before, but what’s left is less than ever,” Mr Matthews told the Australian Financial Review.
‘The client is not prepared for that, so we take the hit. Brewers and distributors face similar pressures and pass costs on to us, but we are the end of the road.’
Last month, financial services and software company CreditorWatch predicted in a report that one in 13 hotel businesses would fail in the next 12 months.
The report claimed that businesses were left at the discretion of their spending customers, a demographic that had “depleted as cost-of-living pressures increased”.