Home Australia 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

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

by Elijah
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Another Australian brewery is in financial difficulty as a number of craft brewers went into voluntary administration, all blaming the same reason for their problems. Pictured are a man and woman drinking Black Hops Brewing beers.

Another Australian brewery is in serious financial difficulty after a number of craft brewers went into voluntary administration, all blaming the same reason for their problems.

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

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

“This decision has not been easy to make, however, the path the ATO has taken with the business 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 sourced nationwide.

Another Australian brewery is in financial difficulty as a number of craft brewers went into voluntary administration, all blaming the same reason for their problems. Pictured are a man and woman drinking Black Hops Brewing beers.

Another Australian brewery is in financial difficulty as a number of craft brewers went into voluntary administration, all blaming the same reason for their problems. Pictured are a man and woman drinking Black Hops Brewing beers.

Black Hops Brewing was founded in 2015 by friends Dan Norris, Eddie Oldfield and brewer Michael 'Govs' McGovern (pictured) and has since supplied nationwide.

Black Hops Brewing was founded in 2015 by friends Dan Norris, Eddie Oldfield and brewer Michael 'Govs' McGovern (pictured) and has since supplied nationwide.

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

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

“Just when things are changing, we have bureaucracies like the ATO coming in and taking it away. It’s a tragedy,” he told the Gold Coast Newsletter.

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

Their taverns will also remain open and serving food during this period.

“So please support us right now and support our taprooms and retail sales. We are grateful that you are a part of our continued journey,” the note read.

Since 2015, Black Hops has grown from a 250 square meter building to a 600 square meter brewhouse and then to a massive brewery and tap 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 been successful in national distribution, but financial difficulties have led it into voluntary administration.

The federal government’s excise tax has been a major concern for independent brewers for some time.

‘Excise duty is the biggest complaint we have as an industry. “We pay the same amount of excise duty as Lion or CUB,” said Stef Constantoulas, co-founder of Sydney’s Philter Brewing. news.com.au.

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

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

“We are in the early days of this process as we assume management of the business and begin a review of its financial condition,” Deloitte’s Glen Kanevsky said in a statement.

“For now, it is a case of business as usual and continuing to operate while we explore urgent sale or recapitalization options.”

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

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

collapsed during 2023.

Black Hops Brewing's Extra Strength - 6.8 Percent - French Toast Stout Pictured

Black Hops Brewing's Extra Strength - 6.8 Percent - French Toast Stout Pictured

Black Hops Brewing’s Extra Strength – 6.8 Percent – French Toast Stout Pictured

A woman and man drinking Black Hops Brewing's pale ale in cans.

A woman and man drinking Black Hops Brewing's pale ale in cans.

A woman and man drinking Black Hops Brewing’s pale ale in cans.

The industry maintains that the semi-annual increase in excise duty has compounded the financial difficulties of small and medium-sized breweries during a long-running cost of living crisis.

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

“For now, the brewing and taproom operations will continue to trade while we explore urgent sale options,” Mansfield said.

“East Brisbane tavern to be closed over the Easter holidays”.

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