Australian craft brewery Wayward Brewing has entered into voluntary administration, owing creditors an estimated $2 million.
The collapse was due to financial losses from decreasing consumer demand in the craft beer market and rising production costs.
DBA Reconstruction and Advisory – who has been appointed as administrator – said customers and employees should consider it “business as usual”, and there will be no impact on ongoing production, distribution and taproom operations.
DBA will also support the operation of Local Drinks Collective, the distribution business established in 2022 by Wayward Brewing and Batch Brewing, during this process. Batch is not involved in the voluntary administration and will continue operating normally.
Peter Philip, founder and sole director of Wayward, said he is working with DBA on a deed of company arrangement (DOCA) proposal to provide the framework for restructuring the businesses.
Philip established the brewery in 2012 in Camperdown, located in Sydney’s inner west.
“The last few years have been an extremely challenging time across our industry and for the wider economy,” he remarked.
” However, we are confident that the restructuring will ensure the business is on firm footing, and we can look ahead confidently.”
Meanwhile, the Independent Brewers Association (IBA) calls for federal government action to support the industry.
IBA CEO Kylie Lethbridge said the craft brewing industry faces greater challenges than wine and spirits due to a lack of federal government support, policy recognition, and funding programs
“Beer is Australia’s national drink and a part of its culture, but we have no recognition whatsoever,” Lethbridge told Food & Drink Business.
“The federal government has the power here. We know budget submissions are due tomorrow, and the budget will be handed down in May with a focus on the cost of living, but a tweak here would have little impact on the budget but a big impact on the industry.”
