A popular Aussie craft beer brand has collapsed after a decade in business due to increased costs and taxes.
Hawkers Beer, which is based out of Reservoir in Melbourne, announced on Monday it had entered into voluntary administration.
The brewery’s founder, Mazen Hajjar, cited increased operational costs not just affecting Hawkers but the whole of ‘s craft beer industry.
The brewery has grown to one of the most popular manufacturers and distributors of craft beers in Melbourne.
Popular craft brewery brand, Hawkers Beer (pictured), has collapsed after a decade in business, citing increased costs and taxes
Mr Hajjar said the brewery was unable to overcome numerous issues plaguing the industry.
‘Post-Covid has been a challenging period with bigger players increasingly restricting access to taps and shelf space,’ he said.
‘That is combined with broader economic pressures, including increased input costs and taxes.
‘However, we are confident that the restructuring will ensure the business is in a stronger position to fight these challenges going forward.’
The company’s administrators, DBA Advisory, said the decision was made ‘to help facilitate a financial restructuring of the business’.
‘DBA Advisory is supporting the continued operation of Hawkers, so employees and customers should consider it business as usual,’ DBA Advisory said in a statement to NCA Newswire.
Founder of Hawkers Beer, Mazen Hajjar (pictured) said the company could not overcome numerous challenges being faced by the whole industry
Hawkers’ collapse comes just a week after a fresh round of beer taxes were introduced and increased the cost of a pint by 90 cents (stock image)
‘There will be no impact to ongoing production and distribution as a result of this appointment.’
The collapse comes just a week after a fresh round of beer taxes were introduced and increased the price of a pint by 90 cents.
Brewers Association of chief executive John Preston said the cost of a carton of beer will soon become unaffordable for many.
‘The increase brings the tax on a slab to around $20, with GST added on top of that. These days around half the cost of a $55 slab is excise tax and GST,’ he told News.com.au.
More to come.