Sobah Beverages has announced it has entered into voluntary administration, citing pressures and challenges within the craft brewing industry along with economic downturn more broadly.
The completely alcohol-free beverage company was the one of the first of its kind in Australia, founded in 2017 by Dr Clinton Schultz and Lozen McDiarmid-Schultz.
After eight years of building Sobah Beverages, McDiarmid-Schultz said the pair had made the difficult but necessary decision to enter voluntary administration.
“It’s not a decision we ever wanted to make, and we worked hard to avoid this outcome, much to our own personal detriment. Throughout this process, we have done our best to act as ethically and responsibly as possible given the circumstances.
“We’d never wish this situation on anyone, but we are incredibly grateful for the support shown by the beer community and beyond,” she told Beer & Brewer.
Since March this year Sobah has been brewed and distributed in partnership with Black Hops Craft at their brewery in Biggera Waters, Queensland.
McDiarmid-Schultz assured Sobah drinkers that this partnership is set to continue into the future, with plans in place for new releases.
“While the company assets continue to be moved through brokers, Sobah products remain available, and demand for them continues. We are positive about the brand’s future in the market.
“Our staple brew Tropical Lager launched in Dan Murphy’s nationally earlier this year and is performing strongly, and we’re looking forward to seeing the bush tucker range relaunch ahead of summer,” she said.
A statement from the Sobah team also addressed concerns over an article from The Courier Mail in relation to the business’ financial situation.
“A recent article in The Courier Mail contained factual inaccuracies regarding the company’s investors, stakeholders, asset sales and the timing of administration. The company is working to ensure that all stakeholders receive accurate and timely information through the administrators,” read the statement.
McDiarmid-Schultz told The Shout that the team is confident that the administrators will act in the best interests of all involved.
“From our creditors to our 558 equity investors, to our loyal customers – we trust Worrells, will secure the best outcome possible.”