Jobs on the line as historic Billson's Brewery announces it's entering ...

31 Jul 2024
In short:

Owners at Billson's Brewery have announced the business has been put into voluntary administration.

Billson's - Figure 1
Photo ABC News

A statement cited "mistakes" relating to systems and processes "keeping up" with the business in the decision.

What's next?

The brewery will remain open and the supply of Billson's drinks to bottle shops and pubs across the country will continue.

The owners of the historic 159-year-old Billson's Brewery in Beechworth have announced the company has been put into voluntary administration.

In a statement on Wednesday, owners Nathan and Felicity Cowan announced the move, discussing "several mistakes" which had put the company's systems and processes under pressure.

"Over the course of seven years, everyone’s hard work and passion has resulted in overwhelming support by people all over Australia and some pretty incredible business growth," the statement read.

"Unfortunately that growth masked several mistakes we made along the way as our systems and processes failed to keep up. 

"We’re ultimately responsible for these mistakes and we know that we have let people down. We are devastated and sorry.

The Cowans said they were shattered by the decision and had spent months trying to restructure the business. 

"However we now believe this to be the necessary step for survival," the statement read.

Billson's products are stocked at major alcohol retailers across Australia.(ABC News: Jason Katsaras)

Billson's, which brews popular pre-mixed spirits, liqueurs, beers and non-alcoholic cordials and soft drinks, is stocked in major retailers around the country, including Coles, Woolworths, Dan Murphy's BWS and First Choice Liquor stores.

Billson's - Figure 2
Photo ABC News

The historic brewery in Beechworth can also be visited by the public and features a cellar door, beer garden, accommodation and brewery tours.

"The brewery has stood proud for over 150 years and has undoubtedly faced many other perilous times," the statement read.

"The challenges we’ve encountered in 2024 have been vast and incomprehensible in scale. 

"We will do everything possible to work through this so Billson’s can emerge more resilient as a business and ready to take on another century."

Billson's Brewery was established in 1865 and Nathan and Felicity Cowan took over the business in 2017 after Mr Cowan moved from Melbourne for a sea change.

A major employer in Beechworth, the company announced a slew of redundancies in February, with director Nathan Cowan citing cost of living, energy prices and taxes the cause of the cutbacks. 

Wednesday's statement went on to say they intend to keep the venue open as normal during the administration process, as well as maintaining the supply of Billson's drinks to bottle shops and pubs across the country.

"Thank you so much for your support over the years, it truly means the world to us. Despite our many shortcomings, we will never give up. With all of its remarkable local history, we believe that Billson’s will get through this, so people can enjoy it, well into the future," the statement read.

Billson's Brewery was established in 1865.(Supplied: Nathan Cowan)

Billson's - Figure 3
Photo ABC News
Pillar of the community 

Indigo Shire Mayor Sophie Price said council was hopeful the company could be saved in the administration process.

"They're certainly a major employer within Beechworth and they've really developed a fantastic brand and really well recognised within our local community in a short period of time," Ms Price said.

"It's really sad news for everyone associated with Billson's and obviously our thoughts with all the staff and their families that are impacted.

"We're certain that it was a really difficult decision to make and we're thinking of everyone that's involved. 

"We didn't realise that they were in this situation until they've made this announcement today."

Cr Price said Billson's had been an important employer within the region and was disappointed for the staff and families impacted. 

She said council is interested to see how many jobs are retained after the administration process, in a town renowned for its produce and drinks.

"I'm pleased to hear that the venue will continue to operate as normal but looking to see what the outcome can be for Billson's to remain an important contributor to Beechworth."

Brewery owner Barry Young says the ever-increasing alcohol tax and energy costs are hurting small breweries.(Supplied: Murray Towns Brewing Co)

'Volatile time' for brewers 

Wodonga brewer Barry Young said there were a number of challenges for smaller brewers to compete with major players.

"There are probably two stand-out ones at the moment — an increasing alcohol excise which the government does twice yearly, coupled with rising energy costs.

"Brewing can be quite an energy-intensive business," he said.

"Breweries that are a very small-scale should be perhaps offered rebates to to account for that rise in excise."

He said the size of smaller breweries and drinks producers could also disadvantage them in the market.

"There are probably more breweries fighting for less retail space now, which will be an issue because some of the larger-scale brewers tend to dominate that part of the market.

"They [big producers] are producing so many units so that economy of scale works in their favour.

"Craft breweries don't quite have that luxury because we're doing small batch, 1,000 litres at a time perhaps. You really get hit with Increased cost of canning and packaging and freight."

Posted 3 hours agoWed 31 Jul 2024 at 5:03am, updated 1 hours agoWed 31 Jul 2024 at 6:41am

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