Gripes over state funding for BrewDog
… and rightly so. Apparently, Brisbane’s small brewers are more than a little disgruntled that the Queensland government is trumpeting its financial support for Scottish craft brewer BrewDog, which will build a brewery cum restaurant in that city and create over 200 jobs.
As writes Matt Kirkegaard, a local industry observer, “[local craft brewers] are unconcerned about the competition, which they see as positive, but they are astounded at the complete lack of investment or interest in local businesses [like themselves] … to whom government ministers love to pay lip service.”
BrewDog’s total investment is to run to AUD 30 million. How much the Queensland government is contributing is unclear. While the government is boasting of its success at bringing BrewDog to the state, apparently only AUD ten million are going towards the construction of the brewery, which will be built and owned by a local developer and then leased to BrewDog.
The destination of the balance of AUD 20 million (USD 24 million) is less apparent, says Mr Kirkegaard, but seems to include an eventual nationwide expansion of BrewDog’s bars, of which there are already 50 worldwide.
Mr Kirkegaard suspects that the majority of the 235 jobs will be hospitality jobs created in other states and not in Queensland.
Meanwhile, in the state of South Australia, there are no objections to the local government contributing AUD two million (USD 1.6 million) to the development of Pirate Life Brewing’s new brewery and bar in Port Adelaide.
The grant, which does not have to be repaid, is linked to the hospitality side of the venue and the jobs that will be created. As Pirate Life had been pursuing the grant long before its sale to AB-InBev in November 2017, the sale did not affect the government’s appraisal of the application.
Pirate Life’s co-founder Red Proudfoot was quoted as saying: “It’s all about jobs. We’re going to be creating in excess of 80 jobs in the next three or four years but if we don’t hit our milestones and add new jobs and positions, then there will be less funding available for us to draw-down on.”
He indicated that the additional funding will help to fast track the hospitality side of the business. The AUD 15 million brewery will almost quadruple Pirate Life’s annual production to about 130,000 hl beer.
