Newcastle’s Steel City Beer Company has closed its doors, citing economic pressures during the deepening craft beer recession.
“It had always been our goal to establish a brewery and spiritual home within the Hunter Region to solidify our presence within our backyard,” Managing Director Oliver Semken said.
“However, amidst interest rate pressures and a subsequent downturn in consumer confidence, it made it increasingly hard for our business to rationalise funding our brewery aspirations given the current economic climate.”
“Small breweries have found it particularly tough to regain their footing. Faced with these challenges in the industry, we considered our options and made the difficult decision to cease production, redirecting our focus towards enjoying beer in the Hunter’s great venues, rather than brewing it.
“As a business, there’s plenty to celebrate about the past couple of years despite the difficult operating environment. While our plans may not have unfolded as expected in the short-term, we’ve had a lot of fun along the way, met some great people and we remain optimistic that opportunities may present themselves again in the future.”
Lion ends agreement with Steel City
Lion recent parting of ways with Steel City Brewing after producing the beer in Sydney since its 2021 launch.
Documents filed with the Australian Securities and Investment Commission (ASIC) on 20 December 2023 show Lion sold back its 270,000 shares to Steel City Holdings (the business’ holding company) for $80,310.33.
The documents said Lion “no longer wishes to participate or be involved in the company or the company’s business”.
A Lion spokesperson told The Newcastle Herald: “It’s been a tough couple of years for all players in the Australian beer industry with inflationary costs, softening demand, continuing impacts of COVID-19 on our customers, and high interest rates limiting what consumers can spend.”
Lion partnered with some of the Hunter’s most famous sports identities, including Knights legends Andrew and Matthew Johns, Danny Buderus and Kurt Gidley, surfers Craig Anderson, Matt Hui and Ryan Cullinan, to help launch The Steel City Beer Company.
At the time, Semken said: “Our partnership with industry leader Lion and the godfather of Australian craft brewing Chuck Hahn puts us in a great position to make great beer and deliver it in a no-nonsense manner.”
“The Hunter has a long history with the Tooheys brand, and they know the beer drinking needs of the people of the region better than most.
“Chuck Hahn has spent the last 50 years brewing and developing some of the country’s most loved brands and beers. His involvement has been crucial in ensuring Steel City’s products are of the highest quality.”
Brewmaster Dr Chuck Hahn said: “As a brewer for 50 years, I have had the opportunity to start up a number of breweries and create many distinctive ales and lagers.”
“An authentic story and an enthusiastic, competent team of individuals are essential aspects in setting up a new brewing business. Newcastle has long been the epicentre of Australian manufacturing, and Steel City’s founders all have a
meaningful connection to this region they call home.”
“Steel City will brew beers that are easy drinking, refreshing and highly sessionable. We will be working closely
with the Steel City brewing team and the people of Newcastle to develop brews that appeal to those who want to
enjoy a range of great beers and take pride in the region and its heritage.”
Watch the Steel City launch video below: