Gold Coast brewery Black Hops teeters on the edge of collapse - here's why the industry says so many craft brewers are going the wall

Another Australian brewery is in serious financial difficulty, following on from a series of craft brewers entering voluntary administration - and they all blame the same reason for their troubles. 

The latest casualty is the Gold Coast-based Black Hops Brewing, which has gone into voluntary administration due to mounting tax debts.

Like the many other small and medium-sized brewers in the same boat, Black Hops has laid the blame squarely at the door of the Australian Taxation Office (ATO).

'This decision has not been easy to make, however, the path the ATO has taken with the business has left the company in a position where there was no alternative,' the brewery said in a statement.

Black Hops Brewing was started in 2015 by friends Dan Norris, Eddie Oldfield and brewer Michael 'Govs' McGovern and has since become stocked across the country. 

Tony Sutherland, a Black Hops director, said what was happening with the ATO was 'an absolute tragedy'.

'Just when things are turning around, we've got bureaucracies like the ATO come and take it away – it's a tragedy,' he told the Gold Coast Bulletin. 

In a letter to its investors, the company said its beer would still be made and sold while it was in the administration process, which is being overseen by Deloitte.

Its tap rooms will also remain open and serving food in this period.

'So please get around us at this point in time and support our taprooms and retail sales, we are thankful for you being a part of our continued journey,' the note said.

Since 2015, Black Hops grew from a 250 square metre building to a 600sqm brewhouse and then to a massive brewery and tap house in Biggera Waters after a crowd-funding campaign raised $400,000 from 545 investors.

It sells around a million litres of craft beer every year and has found success with national distribution, but financial difficulties has led it into voluntary administration.

The federal government's excise tax has been a major concern for independent brewers for some time.

'Excise tax is the biggest gripe we have as an industry. We pay the same amount of excise that Lion or CUB do,' Stef Constantoulas, co-founder of Sydney's Philter Brewing, told news.com.au. 

Two weeks ago, the award-winning Deeds Brewing also went into voluntary administration in what is shaping as another terrible year for Australia's boutique brewers. 

The jobs of 50 employees of the Glen Iris, Melbourne-based brewer are hanging in the balance, with Deloitte also overseeing its situation. 

'It's very early days in this process as we take over management of the business and commence a review of its financial position,' Glen Kanevsky of Deloitte said in a statement.

'For now, it is a case of business as usual and continuing to trade while we explore urgent sale or recapitalisation options.'

Since the start of the year, small and medium breweries including Big Shed, Hawkers and Golden West have all entered administration.

They followed other outfits such as Ballistic, Parched, Wicked Elf and Running With Thieves which collapsed during 2023.

collapsed during 2023.

The industry maintains that the biannual increase in excise tax has worsened financial difficulties on small and medium-sized breweries during a long running cost of living crisis.

David Mansfield and Tim Heenan of Deloitte are the administrators of Black Hops Brewing. 

'For now, brewing and taphouse operations will continue to trade while we explore urgent sale options,' Mr Mansfield said.

'The East Brisbane taphouse will be closed over the Easter break.'