Australia’s craft beer industry is facing a tough economic climate, as more than 20 breweries have entered either voluntary administration or liquidation over the past 12 months. This week, Melbourne-based Burnley Brewing became the latest casualty, officially announcing its liquidation.
In an update filed with the Australian Securities and Investments Commission (ASIC), it was revealed that Burnley Brewing held a general meeting on September 9, 2024, where members decided to wind up the company. Con Kokkinos was appointed as the liquidator to oversee the process.
This announcement comes shortly after two other breweries, Prancing Pony Brewery and Apollo Bay Brewery, announced restructuring efforts in early September and August, respectively. Both breweries have brought in restructuring practitioners to try to improve their financial situations. These closures follow on the heels of Margaret River’s Black Brewery Co and Brew Barons, trading as Parched West End, which both permanently shut down in July.
Burnley Brewing shared a heartfelt statement on social media, explaining that their decision to wind up taproom operations was driven by circumstances beyond their control. “We are deeply saddened for our staff across production, sales, and hospitality, who have dedicated themselves to Burnley’s success. Despite their immense hard work, external factors have led to this difficult decision,” the brewery stated. They also expressed sympathy for their loyal taproom customers, admitting, “We certainly did not anticipate 2024 unfolding this way.”
Despite ceasing taproom operations, Burnley Brewing will continue to offer heavily discounted takeaway sales for an unspecified period. They urged customers to visit soon before operations come to a complete halt.
While many breweries are struggling, there is some positive news. Dainton Beer, run by Daicom Australia Pty Ltd, recently reopened its on-premise venues after a temporary closure due to a legal issue that resulted in its liquor license lapsing. Daicom has since been placed into liquidation, and Dainton Beer is now operating under a new entity. A statement from the appointed liquidators, DBA Reconstruction & Advisory, reassured customers and employees that the brewery’s production and taphouse operations at Carrum Downs and Croydon will continue without interruption.
Deeds Brewing, which entered liquidation in May, is also temporarily reopening. Its Melbourne taproom will remain open until February, offering customers new limited-edition beers and menu items as part of the relaunch.
The closures, restructures, and reopenings reflect the harsh reality of the craft beer sector’s economic crisis. However, despite the difficulties, some breweries are finding ways to navigate the challenges and stay afloat.
