Aussie brewery goes under as owner reveals reason for decision

An Australian brewery has gone into voluntary administration as the cost-of-living crisis claims another venue. 

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 as the administrators and the first meeting of creditors will be held next week.

Lotus Beer Co director Scott Hunt said the rising cost of rent, ingredients, power and a fall in foot traffic had led to the company going into administration.

‘We are devastated this has happened, we have poured our heart and soul and many years of hard work into this, so to say we are devastated is an understatement,’ he told the Geelong Advertiser.

‘We are extremely proud of what we have produced up until this point.’

Mr Andersen echoed Mr Hunt’s concerns, saying ‘we understand Lotus entered voluntary administration due to rising cost of living pressures’.

He said this ‘ultimately led to a reduced demand for the company’s products whilst it was also experiencing increased costs of production in operating its businesses’. 

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As with the owner, the administrators are ‘hopeful that we can find the right buyer or investor to keep the business moving into the future’. 

‘This is a difficult time for everyone involved, and we will do our utmost to support all stakeholders throughout the process,’ Mr 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 their troubles, along with inflation pressures. 

In March, Gold Coast-based Black Hops Brewing went into voluntary administration due to mounting tax debts.

‘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 at the time. 

The award-winning Deeds Brewing in Melbourne also entered into voluntary administration in March.

Since the start of 2024, small and medium breweries including Big Shed, Hawkers and Golden West have all entered administration.

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

Daily Mail Australia has contacted Mr Hunt for further comment. 

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