The new year has not got off to a great start for Australia\u2019s craft brewing industry, with the news that South East Brewing Company, trading as Kaiju! Beer, has appointed DBA Reconstruction and Advisory as voluntary administrators to assist in a financial restructuring of the business.\u00a0<\/strong><\/p>\n The company will continue operating as usual during this process, with no disruption to production or distribution. Employees, customers, and suppliers can expect operations to continue without interruption.\u00a0<\/p>\n A statement about the voluntary administration said: \u201cThis decision was made by the directors, Callum, Nat and Leigh Reeves, after considering options to address the financial challenges stemming from an accumulation of debt. The directors believe this course of action will deliver the best outcome to the company\u2019s employees, customers, and creditors.\u201d<\/p>\n A Facebook post on the Kaiju Beer page this afternoon said: \u201cHey KAIJU! Family \u2013 We obviously had some pretty big news drop yesterday and we want to thank you for the outpouring of support \u2013 it means the world to us. \u201cWe\u2019re still brewing, packing, and delivering the beers you love. Business as usual. Kaiju has been a popular Australian craft beer for many years, which saw strong growth between 2017 and 2021. The challenge of meeting the high demand for Kaiju saw the business make significant investment to expand production capacity, which was financed through accrued earning and secured bank finance.<\/p>\n The market has changed drastically since the pandemic with factors including the deferral of ATO Excise during the pandemic, the rising cost of living seen over the last 18 months and a drop in beer consumption many brewers have found it hard to continue to operate.<\/p>\n The statement said: \u201cUnforeseen market conditions \u2014 including rising excise tariffs, the introduction of container deposit schemes, and declining consumer confidence \u2014 resulted in a challenging environment for the business.\u201d<\/p>\n CEO and Co-founder, Callum Reeves said: \u201cThe current circumstances required us to make a tough but necessary decision.<\/p>\n \u201cWhile the business is now trading profitably, this step allows us to restructure and ensure a stronger future for Kaiju! Beer.\u201d\u00a0<\/p>\n As with many other brewers Kaiju! Has tried a number of ways to reduce costs including staff redundancies, launching more entry-level products and director pay-cuts. In addition the business has stabilised sales to major retailers and driven growth in key markets, but the burden of debt, particularly the deferred excise payments has proven unsustainable.<\/p>\n The directors said they are \u201cworking closely with DBA Reconstruction and Advisory on a Deed of Company\u00a0 Arrangement (DOCA) to deliver the best outcome for all stakeholders and ensure the company emerges stronger and more resilient from this process\u201d.<\/p>\n Beer & Brewer<\/em> will continue to keep you updated with any news from the Kaiju! Beer team.<\/p>\n<\/p>\n
Cheers, Legends!\u201d<\/p>\n
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