Breweries collapsing: 5 key takeaways for Business Owners

Mark Hutchins

Mark Hutchins

Director - Secured Lending

5 Lessons Business Owners Can Learn from the Collapse of Multiple Breweries

The recent collapse of multiple breweries in Australia serves as a cautionary tale for business owners in all industries. While the craft beer industry may seem like a niche market, the factors that led to these closures can be applied to any business. 

Here are five key lessons that business owners can learn from this unfortunate situation:

1. Be Wary of Economic Downturns – The rise and fall of Breweries

The Australian craft beer industry was booming just a few years ago. However, the economic downturn has had a significant impact on consumer spending. This highlights the importance of being prepared for economic downturns. Business owners should have a plan in place to weather tough economic times. This may include cutting costs, diversifying products or services, and finding new markets.

Lesson Learned: Developing a contingency plan for economic downturns is essential. This may involve diversifying your product offerings, exploring new markets, or implementing cost-saving measures.

2. Manage Costs Effectively

The article mentions that rising excise taxes and overhead costs have put a strain on small breweries. This underscores the importance of effective cost management. Business owners need to be constantly monitoring their costs and looking for ways to reduce them. This could involve negotiating with suppliers, finding more efficient ways to operate, or automating tasks.

Lesson Learned: It’s crucial to meticulously manage your business’s finances. Carefully monitor your overhead costs and identify areas where you can streamline operations and reduce expenses. Staying informed about potential tax changes is also important to proactively adjust your pricing strategies.

3. Stay Competitive

The collapse of these breweries is partly due to the fact that they are struggling to compete with large companies that can produce beer more cheaply. This highlights the need for businesses to stay competitive. This may involve offering unique products or services, providing excellent customer service, or finding ways to lower prices.

Lesson Learned: Prioritize building strong relationships with your customers. Provide excellent customer service, offer loyalty programs, and engage with your audience on social media to foster brand loyalty.

4. Adapt to Changing Consumer Preferences

The article also mentions that consumers are cutting back on spending and some are choosing cheaper generic brands. This highlights the importance of adapting to changing consumer preferences. Business owners need to be constantly aware of what their customers want and need to be willing to adapt their products or services accordingly.

Lesson Learned: Staying in tune with your target audience’s preferences is critical. Conduct market research to understand consumer trends and adjust your product offerings accordingly.

5. Build a Strong Brand

In a crowded marketplace, it is essential to have a strong brand. A strong brand will help you to differentiate yourself from the competition and attract customers. Business owners should invest in building a strong brand identity and reputation.

Lesson Learned: Invest in building a strong brand that resonates with your target audience. Identify your USP and leverage it to differentiate yourself from the competition.

By following these lessons, business owners can increase their chances of success in a competitive and ever-changing marketplace.

In addition to the above, here are some additional tips for breweries specifically:

  • Focus on quality and innovation: Consumers are still willing to pay a premium for high-quality craft beer. Breweries that focus on producing unique and flavorful beers will be more successful.
  • Build a strong brand identity: Create a brand that resonates with your target audience. This includes your brewery’s name, logo, and overall aesthetic.
  • Develop a loyal customer base: Build relationships with your customers and get them excited about your brand. Offer loyalty programs, host events, and get involved in the local community.
  • Embrace technology: Use technology to streamline your operations, reach new customers, and sell your beer online.

By understanding these five key lessons gleaned from the collapse of multiple breweries, business owners can increase their resilience in the face of challenges and position themselves for long-term success.

How can Secured Lending Help?

Short term finance provide a lifeline for struggling enterprises to regain their financial footing and continue contributing to the economy.

Short-term business loans play a crucial role in supporting these plans by providing much-needed capital flexibility. If your small business is facing financial challenges, don’t hesitate to explore the benefits of restructuring and consider short-term business loans as a viable solution on your path to recovery and success. Consult with financial experts and leverage the available resources to ensure a smooth and successful restructuring journey.

Secured Lending understand the complexities of debt for businesses and the potential benefits of short-term loans. Our experienced team is here to guide you through the process  and helping you explore suitable financing options to address your debt effectively. 

Our loan products are designed to provide short term relief in circumstances where funding is not immediately available from traditional sources of finance, such as banks and other first tier institutions. These include:

We aim to implement our solutions as a matter of priority so that you can resume business as usual, with full control of your company.

If you or your client are in need of finance and need to speak to one of our experts, contact us on 1300 795 175 or email us at


Secured Lending


Secured Lending focuses on non-conforming, short term funding solutions with incredibly quick turnaround times. So why Secured Lending?
  • We have our own internal property valuation team.
  • We can settle caveats, 1st and 2nd mortgage loans within 24 hours up to $45m.
  • We pride ourselves on being transparent and honest in our approach, always aiming to have an initial assessment back to you in a few hour

Our rates start at 9.95% p.a. with loan terms from 1 – 24 months.

 If you have a scenario to discuss, please call us on 1300 795 175.
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