Crafty operators pouring in to beer
MICHAEL Conrad is about to roll out the first kegs from his new brewery at Milton this week.
The co-owner of Newstead Brewery has seen craft beer grow from a cottage industry four years ago to a $280 million sector that is still expanding.
A new report commissioned by the Independent Brewers Association released today shows there are now more breweries operating than at any time in Australia’s history.
“I expect to see another half dozen brewers open in Queensland in the next year,” said Mr Conrad, a former fine-dining restaurateur.
Queensland’s Newstead, Green Beacon and Burleigh Brewing Co are among 380 brewers across the country producing 59 million litres of beer each year and employing 2400 people.
Mr Conrad said Newstead had two breweries incorporating pubs – at Newstead and now at Milton – employing 80 people and selling beer to large liquor chains and on tap. The company founded in 2013 also relies on food and beverage sales for revenue.
“Demand is being driven by premiumization,” he said, referring to consumer preferences for more quality alcoholic drinks. “The idea is to drink less and drink better.”
Mr Conrad said craft beer sales still only made up a small percentage of the total beer market in Australia so there was room for more players.
“If you look at the US or UK market, craft beer makes up 15 per cent to 20 per cent so I don’t see growth stopping in Australia,” he said.
The Independent Brewers Association has launched a campaign calling for a fairer excise system to encourage further investment by small independent brewers.
Burleigh Brewing coowner Peta Fielding said craft brewers pay about 25 per cent of their total revenue as excise, a tax that is imposed as soon as the beer leaves the brewery.
“Excise relief would allow small brewers to invest in building their capacity and capability and generate more employment,” Ms Fielding said.