MESS BUT DON’T BEER WITH OUR
You can close our borders and keep our kids at home
BOUTIQUE breweries say they are going flat and risk drying up for good without support during the coronavirus crisis.
A shock survey by the independent Brewers Association reveals all members, including the 19 brewers on the Gold Coast, had suffered on average a 69 per cent drop in revenue since tight business and social restrictions were enforced.
It effectively meant a total shutdown of the hospitality sector, wiping out the heavily reliant wholesale/on tap market for breweries.
The IBA has since called for a reduction to the Federal Government’s excise already granted to the wine industry.
“Indie brewers are at a massive competitive disadvantage to the multinational mega-brewers because our beer is handcrafted, which means we employ 15 times the number of employees per litre of beer,” IBA chairman Peter Philip said.
“If we don’t do something now the losses could be devastating for the entire independent beer industry.”
The IBA is lobbying the Federal Government for greater support to help save the industry.
Burleigh Brewing founder Peta Fielding said the excise could be a huge hit to businesses short on cash because of the pandemic.
“We pay excise on any beer that leaves our brewery this week on the next Monday, well before the beer is paid for. That can be roughly 25 per cent of revenue so it is a lot of cash to be funded upfront.
“I am sure any relief on that would be welcome.”
Despite the dire outlook by many Ms Fielding said the industry was full of resilient, creative people.
“I am really hopeful the end won’t happen, it is a really unique, awesome bunch of people in the industry.
“We are the suppliers into a market that has been impacted way more than us. We all feel for hospitality at the moment.”
Lost Palms Brewing Co. sales and marketing manager Zak Nalder said it was a critical time to show support for local breweries.
While still operating, the Miami-based company says it had lost wholesale income following the mass closure of venues statewide.
“The wholesale market is about 60-70 per cent so it is a fair big chunk of revenue,” Mr Nalder said.
“We know of some operating takeaway but not too many.
“The best way to help us would be to buy from independent-owned bottle shops, so the money gets back to the brewery faster – or best of all go to the source and buy direct.
“The Gold Coast is a small area, with not a huge population, so there is worry for small producers.”