KAIJU! Beer have become the latest brewery to enter voluntary administration, appointing DBA Reconstruction and Advisory to oversee a financial restructure of the overarching business, South East Brewing Company.
Throughout the voluntary administration process, KAIJU! will continue operating as usual, with the doors to their Huntingdale brewpub remaining open and their production schedules continuing without interruption.
Co-founder and CEO Callum Reeves told The Crafty Pint the decision was made due to the level of debt they were carrying, including an excise bill owed to the Australian Taxation Office (ATO).
"I'm really confident about the business going forward; we've had a really good couple of months, it's just we were never going to be able to work through the debt," Callum says.
Indeed, the last 12 months have brought many positives for KAIJU!, with the brewery named Champion Medium Australian Brewery at 2024's Australian International Beer Awards while also securing a Best Pilsner Trophy for their Köldspliff.
In recent years, their Dandenong South production brewery has continually been upgraded to keep up with demand and in early 2022, they opened their long-planned brewpub in Huntingdale.
Callum is also the chair of the Independent Brewers Association; a role that's seen him make many media appearances and regularly call for more government support for the beer industry and relief from twice-year excise tax increases and the many container deposit schemes (CDS) across the country. Over the weekend, Callum spoke to the Herald Sun about how beer prices would soon rise once again as Victoria's CDS and the excise rate on beer both increase at the same time.
You can listen to our recent podcast episode with Kylie Lethbridge and Sabrina Kunz from the IBA here. In it, they discuss the many concurrent challenges impacting indie brewers.
Earlier in the year, we also spoke to Callum about his role in the IBA and their focus for the future.
The full media release is available below.
Media Release: South East Brewing Company Pty Ltd (trading as KAIJU! Beer) enters voluntary administration to facilitate financial restructuring
South East Brewing Company Pty Ltd (KAIJU! Beer) has appointed DBA Reconstruction and Advisory as voluntary administrators to assist in a financial restructuring of the business.
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.
This 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's employees, customers, and creditors.
Between 2017 and 2021, South East Brewing experienced consistent growth, necessitating significant investment in expanded production capacity. This was financed through a combination of accrued earnings and secured bank finance. However, unforeseen market conditions — including rising excise tariffs, the introduction of container deposit schemes, and declining consumer confidence — resulted in a challenging environment for the business.
Efforts to address these challenges included significant cost reductions, such as staff redundancies, director pay cuts, and the introduction of more entry-level products. Additionally, the company restructured its sales approach, stabilizing sales to major retailers and achieving growth in key territories. Despite these positive changes, the accumulated debt, particularly deferred excise payments, has proven unsustainable.
“The current circumstances required us to make a tough but necessary decision,” said Callum Reeves, CEO and Co-founder. “While the business is now trading profitably, this step allows us to restructure and ensure a stronger future for KAIJU! Beer.”
The directors are working closely with DBA Reconstruction and Advisory on a Deed of Company Arrangement (DOCA) to deliver the best outcome for all stakeholders and ensure the company emerges stronger and more resilient from this process.
Will Ziebell is a history graduate who knows more about The Wire than he does about beer. He was awarded the AIBA Best Media trophy in 2018 and in 2024; HBO have told him to please send his fan mail elsewhere. He can be found on Instagram, Twitter and TikTok.
The beer(s) or moment(s) that turned you on to good beer:
Spending time living in the UK (and backpacking across Europe) when I was 21 certainly gave me a better understanding of the beer and different styles of the world. But I'd say it was a holiday to the High Country a little while later when lunch and a tasting paddle at Bridge Road Brewers created an obsession with Australian breweries and locally made beer.
You've got three beers to turn someone else on to good beer; what are they and why?
-
Boatrocker's Miss Pinky: It's a raspberry-packed Berliner Weisse that neither looks or tastes the way many people conceive of beer.
-
Bad Shepherd Hazelnut Brown: A luscious mix of chocolate and hazelnut that can appeal to the sweet tooth within us all.
-
Stone & Wood Pacific Ale: As the father of my oldest friend once said to me: "It's the perfect refreshing pint that smells like they've loaded it with the God's herb."
The last beer you enjoyed:
Garage Project's DFA while sitting at the bar at Miss Moses as the sounds of The Rolling Stone drifting in the background.
Three things that represent you:
- Bruce Springsteen
- Ken Burns
- The State Library of Victoria
