that found its way onto tap lists and fridges around the country, an independent producer is going out of business or into administration.
In part, it's the issues brought on by the pandemic that so many industries are battling: skills shortages, surging transport, ingredient and freight costs, and rising inflation and interest rates making it harder for consumers to stump up for a premium, artisan product like craft beer."We are the third highest taxing nation on beer manufacturing in the world," Lethbridge said.
" rejigged the numbers, pulled out all the stops and said, 'OK, this is what we could do in two years'.The brewer in question was Hawkers, which has now emerged from administration under a restructuring approved by creditors, including the ATO, who'll now get 10 cents for every dollar it was owed."The inflexibility in not allowing those extensions means that they are losing," she said.
Lethbridge said the secretive arrangements vary, but often include "sexy" incentives like paying for a venue's furniture, providing rebates, or offering first-class trips overseas. Small brewers say tap contracts are making it harder for independent beers to find their way into pubs and venues. In addition to more flexible repayment arrangements with the ATO, it made five proposals, including freezing the alcohol excise for two years and indexing the $350,000 remission cap introduced in 2021 with inflation."There's a perception that the small producers already receive a different benefit than what the large multinational breweries do," Lethbridge said.