Australian alcoholic RTDs and cordials producer Billson’s Beverages has appointed administrators.
Announcing the news through a post on Facebook today (31 July), husband and wife owners Nathan Cowan and Felicity Cottrill said they had faced “vast and incomprehensible” challenges this year.
Go deeper with GlobalData
Cowan and Cottril added that the company had been dealing with a difficult economic environment, but had also made “several mistakes” since acquiring the brewery seven years ago in Beechworth, north-east Victoria.
While stressing Billson’s had seen “incredible business growth”, they added: “Unfortunately that growth masked several mistakes we made along the way as our systems and processes failed to keep up.
“We’re ultimately responsible for these mistakes and we know that we have let people down. We are devastated and sorry.
“We’ve tried everything imaginable over the past six months to avoid this situation, including restructuring on two occasions, however we now believe this to be the necessary step for survival.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataWhile the administration process is underway, the brewery’s venue will remain open and online sales will continue, as well as supplies to bottle shops and on-trade in Australia.
The Billson’s Brewery was founded in 1865 by George Billson. It was taken over by Murray Breweries in 1914. By the 1950s it was no longer brewing beer and produced cordial, something it continued to produce since Cowan and Cottrill took it over in 2017.
The couple have expanded the brewery’s range from cordial to beer, ginger beer, cider and alcoholic RTDs.
Administrators Rob Smith and Matthew Hutton from the advisory firm McGrath Nicol have been appointed to oversee Billson Brewery’s voluntary administration.
Speaking to Australian media agency News.com.au, Smith said: “This business had extraordinary growth from very little revenue, as in sub A$1m ($650,560) in 2018, to more than A$120m last year and it was profitable growth.” he said.
“With that sort of significant growth from almost nothing, there does come growing pains and mistakes along the way but that is extraordinary growth.
“That means mistakes can be made and there can be learnings. When all of sudden you have macro issues like significant cost of living pressures that impact demand then it can be hard to adjust quickly. It’s grown so quickly and demand has eased so quickly because of cost of living pressures its been very hard to adjust fast enough,” Smith added.
It has been a tough few years for the Australian beverage industry.
Last month, Lion said it was planning to shut Malt Shovel Brewery in the Australian city of Sydney amid pressure on beer consumption and rising costs in the country.
Melbourne-based craft brewer Lotus Beer Co. went into administration earlier this month.
Also this month, craft beer producer Mighty Craft announced plans to bring in administrators.
The company had been looking to merge with Better Beer, the local beer business in which it owns a minority stake.
In the statement, Mighty Craft said its proposal to merge with Better Beer – in which it holds a 33% stake – had been “fundamental” to its recent efforts to reduce debts.
