An Australian brewery has entered voluntary administration as the cost of living crisis claims another premises.
Lotus Beer Co., which runs Valhalla Brewing in Geelong, Victoria, has become the latest craft beer company to fall victim to tough economic times.
Scott Andersen and Matthew Kucianski of Worrells have been appointed administrators and the first creditors meeting is due to take place next week.
Lotus Beer Co. CEO Scott Hunt said rising costs for rent, ingredients, energy and declining foot traffic led the company to file for bankruptcy.
“We are devastated by what has happened, we have put our heart and soul and many years of hard work into this, so to say we are devastated is an understatement,” she said. Geelong Advertiser.
“We are very proud of what we have produced so far.”
Mr Andersen echoed Mr Hunt’s concerns, saying: “We understand that Lotus has entered voluntary administration due to increasing cost of living pressures.”
He said this “ultimately led to lower demand for the company’s products, while the company also experienced higher production costs in operating its business.”
Cost of living pressures have led another Australian brewery to file for voluntary administration (file image)
Like the owner, the administrators are “hopeful that we can find the right buyer or investor to keep the business going in the future.”
“This is a difficult time for everyone involved and we will do our best to support all stakeholders throughout the process,” Andersen said.
‘Our team is committed to ensuring that the process is conducted in a professional and transparent manner, and that all parties are kept informed of developments as they arise.’
Australia’s brewing industry has faced serious economic headwinds in recent years, with those affected often blaming the Australian Taxation Office (ATO) for its woes, along with inflationary pressures.
In March, Gold Coast-based Black Hops Brewing filed for voluntary administration due to mounting tax debts.
“This decision has not been an easy one to make, however the path that ATO has taken with the business has left the company in a position where there was no alternative,” the brewery said at the time.
Lotus Beer Co. director Scott Hunt (pictured) said rising costs of rent, ingredients, energy and falling spending had led the company to file for bankruptcy.
Melbourne’s award-winning Deeds Brewing also entered voluntary administration in March.
Since early 2024, small and medium-sized breweries including Big Shed, Hawkers and Golden West have entered administration.
They followed other groups like Ballistic, Parched, Wicked Elf and Running With Thieves who collapsed during 2023.
Daily Mail Australia has contacted Mr Hunt for further comment.
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