Malt Shovel Brewery closes after 36 years

A popular brewery that played a ‘pivotal’ role in the craft beer movement will close its doors for good after more than three decades in business. 

Lion, one of the largest beverage companies in the world, will close the Malt Shovel Brewery in Sydney‘s Camperdown by the end of August.

The brewery is responsible for crafting a series of popular beers including Eumundi, Little Creatures, New Belgium and James Squire. 

Staff members have been notified about the impending closure with products to be brewed at plants in northern NSW and Geelong in Victoria. 

Lion’s managing director James Brindley cited increased production costs, cost-of-living pressures and government excise as forcing the closure.

‘This week we’ve informed our valued team members at Malt Shovel Brewery of the difficult decision we have taken – which is that we are proposing to close the site at the end of August 2024,’ Mr Brindley said in a statement. 

‘It’s been a tough time for all players in the Australian beer industry – with overall volumes declining by 100 million litres since 2019, continuing a long-term decline in consumption of beer.

‘There have also been ongoing cost of living pressures reducing discretionary spending, and continuing increases in costs like energy, labour and ingredients, as well as government excise, which is now the third-highest in the world.’

The Malt Shovel Brewery was first opened in 1988 by independent brewer Chuck Hahn and was acquired by Lion in 1993.

The brewhouse soon became the heart of Lion’s craft beer business and played a ‘pivotal role’ in Australia’s craft beer movement.

It comes just three weeks after Asahi, Lion’s biggest competitor, closed their Matilda Bay brewpub in Victoria’s Yarra Valley on May 19 – citing high costs.

A string of independent breweries have collapsed in recent months following a series of hikes to alcohol taxes and operational costs. 

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Small and medium breweries Deeds Brewing, Big Shed, Hawkers and Golden West  have all entered administration since the start of the year. 

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

The Carringbush Hotel, in Melbourne’s inner north-west, was forced to close its doors after 135 years of business. 

Owner Liam Matthews, 47, claimed he would have to charge $20 a beer in order to remain afloat amid the ‘horrendous’ costs. 

‘We’re putting more in the till than ever, but what is left over is less than ever,’ Mr Matthews told the Australian Financial Review. 

‘The customer is not ready for that so we take the hit. The brewers and deliverers are facing similar pressures and pass costs on to us, but we’re the end of the line.’  

Last month, financial services and software company CreditorWatch predicted in a report predicted in one in 13 hospitality businesses would fail in the next 12 months.

The report claimed businesses were at the discretion of spending customers – a demographic that had ‘dried up as cost-of-living pressures mount’.