Melbourne-based Deeds Brewing has become the latest craft brewer to enter voluntary administration (VA), as the strain on Australia’s small breweries and businesses continues to grow.
Deeds joins the likes of Bad Shepherd, Ballistic, Big Shed, Hawkers, Golden West and Wayward in VA, although Wayward and Hawkers have since found a way back into operating.
Deeds was founded by Patrick Alé and David Milstein in 2012, initially as Quite Deeds, but later simply Deeds Brewing with the pair working together on different recipes and brewing techniques as part of their commitment to innovation and creativity.
In a joint statement that pair said the difficult decision to enter VA, was not one that they had taken lightly, and highlighted the two key events that forced their hand.
“We’ve enthusiastically and positively embraced the many challenges we’ve faced over our 21 year business career and there have been many, but the decision to put Deeds into VA has been the most difficult decision we’ve ever had to make,” the statement said.
“We feel terrible for the stress this is causing to our staff, our suppliers, customers and our fans.
“We were left with no other choice as a result of two events that occurred in the space of the last week. As many other breweries, we have legacy tax debt from COVID, the ATO had previously been ok to let us pay when we could, but in the last 12 months they have changed their approach.
“We’ve asked the ATO for a payment plan numerous times, and have been rejected each time. We simply wanted more time so we would not have to put massive strain our business during very difficult market conditions.
“We also had a malt issue from 2022, in which we purchased contaminated malt, brewed a very large amount of beer that got out in the market, which we then had to pull out of the market at our costs. We’ve been working to make a claim through insurance, unfortunately our claim was rejected this week. These two events have left us with no other option but to put Deeds into VA.”
The pair also said that rising costs and decreasing sales have put further pressure on the business, but did say: “Our goal is to work through this with everything we’ve got and come out of VA with a stronger business than we have now.”
Adding: “We know it’s difficult out there and a lot of people are struggling but if you have ever enjoyed our beers in the past and wish to continue enjoying our beers in the future, we’d really appreciate your support. Now more than ever. You can still purchase our beers online through our website or from your local bottle shop/bar.
“If you’re Melbourne based, come visit us at our Taproom in Glen Iris, we have a great line up of beers and food and drink options for everyone, not just beer drinkers.
“We’re proud of what we have built with Deeds and want to thank everyone that has supported us so far, we hope that we can continue to brew beers that are worth sharing for many years to come.”