NSW Government announce support package to independent breweries

On June 11, Deputy Premier and Minister for Regional NSW, Industry and Trade John Barilaro announced funding of $135,000 to provide resources and support to the industry through the Independent Brewers Association.

The package will cover one year's annual membership funds, allowing the Association to continue providing services to over 150 independent brewing operations, including supporting a range of initiatives to foster growth as they rebuild after COVID.

The commitment follows development of the NSW Government's Independent Brewers Action Plan, launched earlier this year to realise future development opportunities.

Devil's Hollow Brewery co-founder Brendon O'Sullivan said the timing of the package was "impeccable" as they were soon due to renew their fees so any support was helpful during this time.

The Dubbo brewery first opened in July 2019 and Mr O'Sullivan said they have gone through much hardship in the first 12 months.

"With drought, dust, fires, COVID-19, the economy. Everything you can possibly think of, " he said.

"However... we've been well supported by the community."

Mr O'Sullivan said the state government have shown a lot of interest in supporting regional breweries, especially in regards to being a regional destination for tourism.

The brewery had to close it's doors to seated customers earlier this year when the government put the country into strict lockdown and in that time operated as takeaway only.

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It has now been in full operation since the beginning of June, when it was announced that pubs, clubs, cafes and restaurants can have up to 50 customers.

"We look at Devil's Hollow Brewery as being a destination, it's another asset to the city of Dubbo," Mr O'Sullivan said.

"Last weekend (the June Long Weekend) was a fantastic indication of the support, we had a flood of tourists and travellers popping in."

Owner of Orange brewery, Pioneer Brewing Co, Peter Gerber said any government support will assist the industry and they plan to redirect the funds they would have otherwise spent and funnel this back into the brewery taphouse.

"The support is without doubt needed across the brewing industry, there are many brewers hurting," he said.

"We have been extremely fortunate to have received strong support during the drought, summer fires and now COVID by the local central west community. We have hunkered down with every obstacle which came at us this financial year and tried to turn the challenges into an opportunities."

The Orange brewery founder said Pioneer Brewing Co will see a sales growth this financial year even in the face of everything thrown at them.

"The team and my family have given it our all this year to tackle the challenges," Mr Gerber explained.

"Our number one goal this coming financial year will be to see the completion of our brewery taphouse build, kitchen and quite large landscaping project.

"We are also intending to submit a further development application with Cabonne Council to enhance our farm experience offerings."

With international travel still banned Mr Gerber hopes this may mean metro residents travel to the central west.

"Being an easy few hour's drive we should be known as their new back yard and we need to grab that opportunity now and foster that for the longer term," he said.

Mr Gerber said Pioneer Brewing Co have become more sustainable, efficient, quality focused and more hungry then even, so when the economic and COVID conditions improve, they will be ready.

"If the government really wants to help the industry, our key request would be for the federal government to reform their outdated approach to Excise tax for small brewers," Mr Gerber said.

"Overhaul the system and reward job creation perhaps with excise rebates. We are not asking to keep the excise funding we are simply suggesting tax could be better diverted and invested in creating jobs or beer tourism infrastructure.

"The current taxation levels and impact on cashflow caused by the current excise system is stunting the industries growth rate."

Mr Barilaro said two thirds of NSW craft breweries are located in regional NSW and have been doing it tough throughout COVID as they rely so heavily on tourism and taprooms for survival.

"Regional breweries play a significant role providing employment locally and as the focal point for community activities," he said.

"They also bring additional business and visitors, attracted by their natural ingredients, artisan products and innovation."

Independent Brewers Association Chairman Peter Philip said the funding would help the industry rebuild.

"This is a wonderful result for NSW indie brewers, particularly small breweries in regional areas who have been doing it tough," Mr Philip said.

"Some have lost nearly all of their revenue due to the pandemic. This grant will provide a much-needed stimulus for the path to recovery for our members."