Lion closes historic Malt Shovel Brewery after 36 years

Sydney’s Malt Shovel Brewery is being closed down by beer giant Lion after more than three decades in business.

The brewery, which was responsible for beers including Little Creatures and New Belgium, will close at the end of August and brewing production will be moved to sites in northern NSW and Geelong in Victoria.

According to reports, staff members were notified by Lion about the impending closure this week in what the company has called a “difficult decision”.

Speaking about the decision to close the historic brewery, Lion’s managing director James Brindley issued a statement where he cited increased production costs, cost-of-living pressures and government excise as reasons for shutting the site down.

Brindley said: “This week we’ve informed our valued team members at Malt Shovel Brewery of the difficult decision we have taken – which is that we are proposing to close the site at the end of August 2024.”

Brindley explained: “It’s been a tough time for all players in the Australian beer industry – with overall volumes declining by 100 million litres since 2019, continuing a long-term decline in consumption of beer. There have also been ongoing cost of living pressures reducing discretionary spending, and continuing increases in costs like energy, labour and ingredients, as well as government excise, which is now the third-highest in the world.”

Independent brewer Chuck Hahn first opened the Malt Shovel Brewery in 1988 before it was acquired by Lion in 1993 with the brewery playing what has been cited as “pivotal role” in Australia’s craft beer movement.