Recently named New South Wales Champion Brewery, Philter, has launched a Birchal equity crowdfunding raise in what it says is a fight to stay independently Australian owned.
Philter launched in 2017 and has grown 43 per cent year on year and has exceeded $30 million in sales revenue.
Co-founder Stef Constantoulas said the brewery is joining the fight against global beer giants muscling out the country’s independent owned craft beers from pubs.
“Before I co-founded Philter with Mick Neil, I worked for one of the beer giants that currently have a duopoly over the Australian marketplace. If we were in any other country, these tactics would be considered anti competition and the government would stamp it out with appropriate legislation.
“Together, Carlton United Breweries, which is owned by Japan’s Asahi, and Lion Nathan, owned by another Japanese powerhouse Kirin, account for approximately 80-85 per cent of sales in Australia.
“For decades these guys have been locking in long term exclusive contracts with pubs inhibiting independent beer from having a fair go.
“Australia’s beer culture has evolved greatly over the past 10 years with the vibrancy of craft beers, and that has got the big boys worried. When CUB and Lion Nathan buy out the independents, not only will jobs vanish, but profits will also be siphoned off overseas, rather than being spent in Australia,” Constantoulas said.
According to Philter, independent breweries employ more than half of Australia’s brewing jobs, but only account for seven per cent of annual sales.
Constantoulas said it’s this figure that has been the catalyst for them to launch a campaign to stay Australian owned.
Philter is using its respected industry position to spotlight ’tap contracts’ that limit how many craft beers are in pubs.
Constantoulas said diversity is important because, “these beer giants influence what you will be drinking – beers produced conform to their shareholder wishes, not to the wishes of the punters who want diversity and flavour. There are also a number of imitation craft beers available which creates confusion for consumers and clouds the concept of independence in the industry”.
Co-founder Mick Neil said it was time to draw attention to the issue.
“We just want a level playing field to continue doing what we love. We are bolstering our war chest so we can double our capacity and take the duopoly head on.
“That’s why we want our loyal supporters to become part owners in Philter– we are proudly Australian owned, and we want to stay that way,” Neil said.
Philter is a member of the Certified Independent Seal initiative, a group of breweries championing independence. To display the seal, the brewery needs to be an IBA member, which means it has less than 20 per cent foreign ownership and produces fewer than 40 million litres of beer each year.
Neil said it was a way to identify Australian breweries that support jobs and a diverse marketplace.
“While independent beer has less than 10 per cent of the total market share of beer in this country, it employs 51 per cent of the industry as it is more labour intensive – it takes time to add all that love!
“On top of that indie breweries provide over 26,000 jobs in sectors such as agriculture, manufacturing and logistics and contributes approximately $1.93 billion to the nation’s economy every year,” he said.
There are currently over 600 independent breweries in Australia.
