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South Australia’s Big Shed Brewing Enters Administration Amid Economic Struggles

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South Australia's Big Shed Brewing Enters Administration Amid Economic Struggles

South Australia’s famed craft brewery, Big Shed Brewing, has recently made the tough decision to appoint administrators in the wake of challenging economic circumstances. The restructuring firm Heard Phillips Lieberenz, led by Mark Lieberenz and Anthony Phillips, stepped in to assist the Adelaide-based brewery situated in Royal Park.

Established in 2012, Big Shed Brewing has been known for its quirky beer creations and fruitful local collaborations with South Australian brands like Thebarton Distillery and Mitani Chicken Salt. Co-founder Craig Basford expressed the brewery’s struggle post the COVID-19 aftermath, citing heavy investments made just before the global pandemic hit in March 2020.

The brewery announced that business operations will continue without disruption under the administration. Lieberenz mentioned that the existing staff and management team share a strong passion for the brand and its offerings, bringing optimism despite the challenging times.

Basford emphasized the commitment to secure the best possible outcome for the brewery’s creditors, acknowledging the importance of community support. He highlighted the significance of beer enthusiasts rallying around independent breweries like Big Shed Brewing to ensure its resilience over the long term.

Big Shed Brewing’s journey saw the establishment of their Royal Park site using a mix of government funding, which included a $50,000 Federal government grant and a $1 million state government loan. The brewery boasts a 35-hectolitre brewing system capable of producing 12,000 litres in an eight-hour brewing day.

This development at Big Shed Brewing comes closely following the recent news of Melbourne-based Hawkers Beer also entering voluntary administration. Founder Mazen Hajjar attributed the financial challenges to increased production and distribution costs in the post-COVID environment, signaling ongoing struggles for independent craft breweries.