'Optimistic': craft beer label appoints administrator amid hospitality strain

A Central Coast craft beer business says rising costs and steep alcohol excises are among the reasons it has entered voluntary administration a little over a year after its expansion into a new premises.

Six Strings Brewing Co owners Chris and Sharon Benson confirmed the business would restructure this week, saying in a statement "this isn't the chapter we wanted to write".

The regional brewer had brought its wares to the Hunter for a string of festivals in recent years, including Bitter and Twisted at Maitland and the Newcastle Beer Festival.

"Like many independent breweries and hospitality businesses, we've felt the impact of rising costs, increasing excise and a tough economic climate," the owners said.

"We've worked hard to adapt and respond, but ultimately reached a point where we believed administration was the most responsible way to stabilise the business and give Six Strings the best chance of a sustainable future."

The business was expected to continue trading as normal despite the setback, Mr and Mrs Benson told followers online. They said taproom, brewing and wholesale operations would be unaffected.

"While there is naturally some uncertainty ahead, we're optimistic," the Bensons said, adding the business had "strong foundations".

The owners have appointed Vincents director Henry McKenna to lead the restructure and take control of the books. Mr McKenna had previously led Sydney brewer Akasha out of administration over about two months in 2024.

Despite fair trading in the first year after moving to a larger venue on The Entrance Road at Erina, Mrs Benson said creditor accounts had been strained under relocation debts since January amid softer customer spending and tight competition for taps on the supply side.

"We were tracking well, but as of January we have been falling into a bit of a hole," she said. "People are coming out, and we're filling the venue, but they are not spending as much as they would have about 12 months ago."

"We've just really felt the pinch."

She and Mr Benson, the company's director, had made efforts to trade out of the strain over thepast quarter, she said, but were unable to turn the tide.

The business supplies its product between Newcastle and Sydney, but had shed staff and underperforming beers in the past three months. Mrs Benson said she hoped to emerge from administration on a more stable footing.

Over 13 years, Six Strings expanded from initial forays in craft brewing into a multi-purpose hospitality and live music venue, and had consistent sales growth despite broader sector trends.

The restructure comes amid a string of closures and restructures bubbling for years beneath the sector's surface.

The Australian Brewers Association (ABA) has argued record alcohol excise increases, among the four highest tax rates for the industry in the world, hit small and independent operations hardest as they struggled through the COVID pandemic recovery.

Hunter Culinary Association chair and co-founder of Newcastle Food Month Gus Maher said the same economic conditions that hit home budgets had reduced discretionary spending amid increasing costs.

That combination had put strain on the hospitality sector broadly, he said.

"It's all about money through the till," Mr Maher said.

"There are all sorts of issues at the moment that have been well documented in terms of cost of living expenses and wages not keeping up with CPI. These are all conspiring as a perfect storm where hospitality is discretionary spending and discretionary spending is the first thing to get hit."

Regional operators faced an added challenge, he said, working to entice a smaller population and whet the appetites of out-of-town tourists in a market where dining out often came with travel and accommodation costs on top.