Liquor company Lion intends to close the Malt Shovel Brewery in Camperdown in inner Sydney in August, after 36 years of operations.
Beers produced at the Malt Shovel Brewery include James Squire, Eumundi, New Belgium, and Little Creatures.
The company will transfer its brewing activity to other plants in northern NSW and Geelong in Victoria, the Australian Financial Review reported.
Lion’s move follows Asahi’s closing of Matilda Bay Brewpub in Healesville in Victoria’s Yarra Valley last May 19 after five years of operations due to high costs.
The AFR noted that the overall beer market has contracted by 6 per cent in the past five years.
Lion MD James Brindley said the company has already informed its staff of the decision, while noting that it has been a difficult period for beer producers.
“There have also been ongoing cost-of-living pressures reducing discretionary spending, and continuing increases in costs like energy, labour and ingredients, as well as government excise, which is now the third-highest in the world,” said Brindley.
Lion acquired the Malt Shovel Brewery in 1993 from independent brewer Chuck Hahn.
