Things looked bad for Black Hops Brewing, a popular craft brewery on the Gold Coast in Australia, which almost had to shut down. The Gold Coast-based brewery entered voluntary administration in early April, with Deloitte Turnaround & Restructuring to modify the financial structure along with the sale of their equipment and assets. Black Hops announced on social media recently that the company will be sold, bringing in a new chapter in the brand’s history to continue producing their brews.
The Growth of Black Hops Brewing
Black Hops Brewing was founded in 2014 by three friends: Dan Norris, Michael McGovern, and Eddie Oldfield. The company soon became a household brand in the Australian craft beer sector. The main range of Black Hops beer includes pale ale, and Hornet was a hit with customers and received multiple awards. Black Hops has won the title of best craft brewery in Australia in the Beer Cartel Craft Beer Survey of 2022.
Factors Contributing to Insolvency
Hops, a key ingredient in brewing, suffered supply chain issues, particularly during COVID-19. Hops Supply Company struggled to meet demand for Australian hops for some breweries, primarily Black Hops. Dan Norris, the CEO of the brewery, expressed his sincere regret at the choice to go into liquidation. “We have always taken pride in our resilience and innovation, but the current economic climate has proven insurmountable. Despite our best attempts to adapt and overcome, we have reached the point where continuing operations is no longer viable.” Norris stated.
Black Hops Brewing suffered a huge loss of revenue and opted for voluntary administration in March 2024. Temple Brewing Company and Golden West Brewing also closed about this time. Deloitte volunteer administrators discovered debts exceeding $7 million, suggesting that the brewery could have been trading insolvent for 18 months.
Community Responses and Support
A large number of people have shared words of gratitude, memories, and well wishes for the founders and employees on social media. People have sent in stories about Black Hops beers and their experiences in the brewery’s tap rooms.
One loyal consumer said, “Black Hops Brewing has been an important part of my life for many years. From their amazing beers to the friendly staff and welcoming atmosphere, it is hard to imagine the Gold Coast without them. I hope this is not the end of such an amazing brand.”
Black Hops raised $2.2 million at $3.77 per share in January 2022, giving a $67.3 million market valuation in less than a day. Black Hops has launched its second crowdfunding campaign to help fund major expansion plans for 2022. The owners hope to build a Gold Coast gin and whiskey distillery under a new brand, Pine Ridge Distillers, as well as open its fifth taproom.
Black Hops Brewing Liquidation and Asset Sale
On June 30, 2024, the company announced its decision to proceed with Black Hops liquidation. The move aims to settle outstanding debts and recover some value from the business. As part of the process, key assets such as brewing equipment, intellectual property, and the Gold Coast brewery are up for sale. Liquidators will manage the asset sale to ensure transparency throughout the process.
Beers with Black Hops: The Future
Black Hops Brewing News brings us the best news Voluntary Administrator Tim Heenan announced that a group of investors and supporters has stepped in to help salvage the Black Hops company. As a result of this support, the business will now operate under a new name—Black Hops Craft Pty Ltd.
“They believe in the brand, love the beer and are here to support the team. The production site, equipment, assets, and intellectual property, and of course those wonderful recipes of the Black Hops brand, will continue.”
The production site, equipment, assets, intellectual property, and recipes have all been sold and would continue to be produced. A month ago, Black Hops Brewery News announced that Nick Boots would take over as CEO of Black Hops Brewing, starting a new phase for the company.
“We are passionate supporters of craft beer and independent breweries. Most importantly, we believe in the team and the quality of the product; that’s why we’re taking on the Black Hops brand. Independent breweries are an important part of the beer landscape, and we genuinely feel Black Hops is a jewel in the crown of the craft beer industry,” stated Hill.
Darren Hill, a spokesperson for the new owners, stated that they believe in the quality of Black Hops products and are committed to the craft beer community. Hill expressed hope for the future, saying, “Independent breweries are an important part of the beer landscape and we genuinely feel Black Hops is a jewel in the crown of the craft beer industry.”
Effect on Workers and Local Economy
The crew working at the brewery was not just enthusiastic about craft beer but also about its vision. Working at Black Hops was more than just a job for them; it was like being a member of a family.
“Black Hops has been a valued partner for many years. Their commitment to quality has pushed us to grow and improve. Their closure is a loss for the entire industry,” a Hops Australia official expressed concern.
“Breweries need to carefully manage their resources and explore diverse funding opportunities to mitigate risks,” said an analyst. “Relying heavily on a few investors or revenue streams can make businesses vulnerable to unexpected downturns.”
Final Thoughts
The liquidation and asset sale of Black Hops Brewing brought the end of an era in the Australian craft beer industry However, it also highlights the value of community support that could revive a struggling business with a passion for craft beer. Its supporters, especially those in the Black Hops Brisbane community, will carry on its legacy, keeping hope alive for a new team of dedicated owners to restore the brand. For now, the primary focus remains on the future and any opportunities that may emerge from Black Hops Brewing’s asset sale.
