These two breweries are expanding into Sydney. But struggle continues for sector

Following on from last week’s news that Mountain Culture will be salvaging the former home of Atomic Brewing Co, Queensland’s Felons Brewing Co announced yesterday that its first Sydney venue will be opening on Friday 18 October in the former Manly Wharf Bar premises.

In between the two announcements, the Independent Brewers Association also launched this Economic Data Assessment survey to help “aid us in the fight” to improve trading conditions for the sector.

Over the past year alone, more than 20 Australian craft breweries have entered into either liquidation or voluntary administration as a result of the ongoing economic pressures. Good Drinks Australia officially closed its Atomic brewpub in Redfern at the start of September, stating that “trading conditions continue to be challenging and, combined with high rent, the business is unsustainable… With the sale process unsuccessful and the lease nearing the end of its term, we have taken a decision to vacate the site and discontinue trade to minimise further losses in FY25.”

Felons’ first expansion into NSW follows on from parent company Artemus Group taking ownership of Manly Wharf and Wharf Bar in April for a reported $110 million.

“We’re excited to unveil Felons’ new home at Manly Wharf,” said Adam Flaskas, co-founder and director of Artemus Group.

“Our vision for Manly Wharf has always been to create a dynamic, community-focused destination, that fuses dining, and entertainment and raises the bar on hospitality.”

Dean Romeo, Felons’ Brand Director, added: “Manly couldn’t be a better fit for Felons. The lifestyle enjoyed in the Northern Beaches is up there with the best in the world and we’re excited to share that.”

According to this PubTIC article from June last year, Ben May, previous owner of the waterfront wharf location, had no intention of selling but was approached with an offer at just the right time.

“The guys from Howard Smiths Wharves made me an offer that was too good to refuse,” Ben May told PubTIC.

“The timing is just right, with a couple of exciting opportunities about to begin.”

Felons’ and Mountain Culture’s expansion into Sydney venues shines a light on the significant degree of movement currently being experienced by Australia’s craft beer industry. While this turbulence has seen many breweries suffer acute economic difficulties, a few have managed to maintain or increase growth.

Drinks Trade has recently spoken with two breweries about how they’re managing to achieve success in the current trading climate.

Vincent de Soyres, Director, Head Brewer and Co-Founder at Frenchies Bistro & Bar, said: “One thing is that our directors are very involved in the day-to-day production and the day-to-day sales. I think that being 100% involved in this means that, yes, we might grow the business a bit slower because we don't have much time to work on the business (we work so much in the business) but at the same time, it keeps us really in touch with the market. I think that's very important.

Ian Atkins, Founder and Managing Director of Beerfarm, added: “The market is tough: you have to understand every component of manufacturing alcohol, and when I say that, it's not only the production of the beer, but it's the distribution of the beer/it's the hospitality of the beer.”

To better understand the current challenges and to consolidate its advocacy efforts, the Independent Brewers Association is calling on all members to complete its Economic Data Needs Analysis survey.

“The more up-to-date we have, the more compelling our case will be,” said CEO Kylie Lethbridge.

“We are optimistic because we’ve never had so much attention on our advocacy efforts and it’s important we keep up that momentum as we head into the next Federal election that looks likely to be in early 2025.”

This survey is open to members now and will close next Tuesday 8 October.

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From 18 October, Felons Manly will showcase a curated selection of the brand’s core range and limited edition brews, along with a mix of refreshing cocktails, wines, and spirits. Additionally, the venue will feature a menu designed by Corey Costelloe former culinary director of Rockpool Bar and Grill, along with a vibrant live music program.