Sunday, December 22, 2024

Craft breweries are hanging on, but will beer lovers stick with them in a cost of living crunch?

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At the recent Great Australian Beer Spectacular (GABS) in Melbourne, a sort of adult playpen for beer enthusiasts, there were a series of accidental but unfortunate metaphors on show.

In one booth, a high metal bar had been erected to see who could cling onto it the longest (or ‘dead hang’). 

Nearby, precariously balanced beer glasses were set up for a game called ‘Knock ’em Over.’

Attendance at GABS was “nearly on par” with last year according to organisers.(ABC News: Jeremy Story Carter)

A few metres down, a brewery who had recently been knocked into voluntary administration and was now hanging on out the other side, tried to put on a brave face. 

“It’s been a hell of a moment,” said Brendon Guild from Bad Shepherd Brewing.

The brewery’s story was hardly an isolated one, even within the festival itself. 

Man wearing cap holds small cup of brown coloured beer, standing behind row of silver beer taps in an exhibitor booth

Brendon Guild from Bad Shepherd Brewing.(ABC News: Jeremy Story Carter)

“When I got here at nine this morning to get things set up, I walked around to have a look at who was here,” said Mr Guild. 

“There’s a lot of breweries that I’m used to seeing who aren’t here.”

The past year has seen the problems bubbling beneath the surface in the craft beer industry spill over into public view.

News of voluntary administrations or independent brewery closures have become alarmingly regular (only this week, Melbourne’s Alchemy Brewing announced it would be closing for good). 

Woman wearing flannel shirt stands in front of inflated igloo beer exhibit as people walk past

Laura Gray from Bright Brewery in Victoria’s high country.(ABC News: Jeremy Story Carter)

“The vibe is pretty down,” said Laura Gray from Bright Brewery, standing in front of a large inflatable igloo.

“People really are doing it tough and it’s no longer just one or two [breweries], it’s really widespread.

“Each week, there’s more bad news coming out of the industry and it’s getting to a point where it’s businesses and breweries you love, so it is starting to impact everybody.”

Big players and small businesses

With that as a backdrop, the festival became an inadvertent staging point for some of the intersecting issues facing the craft industry.

Like small businesses around the country, independent brewers are facing higher costs at almost every point in their operations and a customer base less able or willing to pay more for a non-essential product.

Man wearing black rimmed glasses and black jacket holds beer sitting at wooden table amid dimly lit beer hall

Callum Reeves from Kaiju! Beer is now the chair of the Independent Brewers Association.

“We’ve got cost pressures and we’ve got selling pressures as well,” said Callum Reeves from Kaiju! Beer. 

“We’re getting squeezed at both ends.”

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