Sydney Beer Co goes bust: Company co-owned by Brett Lee forced into administration
- Brett Lee's Sydney Beer Co under administration
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Former Australian cricket great Brett Lee's beer company has collapsed just months after expanding into the US market.
Sydney Beer Co collapsed due to a difficult trading environment, according to documents filed to the Australian Securities and Investments Commission (ASIC).
The company had been exporting beer to Malaysia and the United States for six months after it raised more than $6million to fund the expansion.
RSM Australian partners Brett Lord and Richard Stone have appointed as administrators of the business and will meet with creditors on March 19.
Mr Lee, who was one of Australia's most intimidating fast bowlers with 310 test wickets from 76 matches, co-owned the beer company with film actor and TV writer Matt Nable.
The beer is stocked in independent bottle stores as well as Dan Murphy's, BWS and other major alcohol retailers.
Brett Lee co-owned the Sydney Beer Co, established in 2016, with writer and actor Matt Nable
'We've been fuelled by a belief that our iconic city deserved a locally owned premium lager as an alternative to the mainstream Asian and European brands that dominate the market,' the company's website read.
'With a dynamic team behind the scenes and high profile owners and stakeholders, Sydney Beer Co has brought a product to market that is loved by all.'
The company was established in 2016, and was directed by Dean Woodbridge and David Catterall, according to ASIC documents.
The business' failure came among plummeting beer sales due to historically very high prices and the cost-of-living crisis.
Much of the increased cost of beer is government tax - the Brewers Association of Australia says around $20 of the price of a slab or carton of beer is tax.
Prime Minister Anthony Albanese last month announced the government would freeze increases to the excise on draught beer for the next two years.
However that measure will not reduce the already high prices on tap beer, and the excise will continue to climb for bottled beer.
'Freezing the excise on draught beer is a commonsense measure that is good for beer drinkers, good for brewers and good for pubs,' Mr Albanese said
The company cited a difficult trading environment in documents submitted to ASIC when it was placed under administration on Friday
Cost-of-living pressures in general have stripped many Australians of disposable income and has had a devastating impact on the hospitality industry.
Younger drinkers are also turning to alternative to beer, including pre-mixed drinks, lower-carb options, seltzers and alcoholic soft drinks.
Forty-eight per cent of young women in Australia aged 18 to 24 preferred drinking pre-mixed spirits, followed by 26 per cent who preferred drinking bottled spirits and liqueurs, according to a Australian Institute of Health and Welfare report release last year.
Young men of the same age bracket, however, still predominately prefer drinking full-strength beer, followed by pre-mixed spirits.
