Business

Freshwater Brewing says independent beer is being strangled

Following a brutal week that saw Molly Rose enter liquidation and Currumbin Valley Brewing close, Freshwater Brewing Co has spoken out about “the silent strangling” of the independent beer sector.

According to founder Jonny Bucknall (pictured main, middle) craft brewers are struggling due to Australia’s dual beer and retail duopolies: CUB, Lion and the supermarket giants Coles and Woolworths.

“Big Beer and Big Retail are squeezing independent brewers out through faux craft, anti-competitive delistings and price distortions,” he said.

The Independent Brewers Association estimates 10% of all Australian craft breweries have shut shop in the past 12 months.

Bucknall said “craft-washing” tactics used by Coles and Woolworths – which produce own-brand beers such as Tinnies, Zytho and Lorry Boys – are skewing the market.

“Beer drinkers are being duped,” he said. “And brewers who scaled to supply these chains are now being delisted with zero warning while faux craft brands stay put. It’s devastating.”

Bucknall said recent SKU cuts by Coles Liquor have left dozens of indie breweries stranded with dead stock, packaging losses and shattered forecasts.

He said he’s not afraid to speak out because the Northern Beaches-based brewer’s model sees 95% of its sales being via local pubs, bars and indie bottle shops.

“We don’t rely on majors — that’s why we can say what others can’t,” he said. “If more breweries want to survive, they need to stop feeding the duopoly and start doubling down on local.”

Freshwater has decided to use its Birchal equity crowdfunding campaign to bring national attention to the issue has already generated a national story on Channel 10 News and an upcoming feature in The Daily Telegraph.

The campaign aims to raise funds to scale up production at Freshwater and expand its distribution.

“This raise isn’t just about Freshwater,” said Bucknall. “It’s about proving that local, community-supported brewing works – and it’s our best weapon against the slow death of craft beer in this country.

“It’s time to stop being polite. The duopoly has declared war on indie beer. The only way forward is hyper-local, diversified sales and genuine community connection. If we wait for someone else to save us, we’ll all be gone.”

Learn more about the crowdfunding campaign here.

Processing…
Success! You're on the list.

Categories: Business