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The Schwartz Family Company, Australia’s largest privately owned hotel group, has staked its faith in the craft beer market following the acquisition of Sydney’s Rocks Brewing Company which fell into administration in October last year.
Rocks Brewing, which operates a brewery and venue at Alexandria in the city’s inner southwest, will be rebranded as Sydney Brewery Alexandria in an expansion of the Schwartz Family’s existing craft beer operations comprising Sydney Brewery Surry Hills and the Sydney Brewery production facility at Lovedale in the Hunter Valley.
Dr Jerry Schwartz, director of Schwartz Family Company, describes the acquisition as a positive for an industry that has struggled in recent years due to high excise duties and weaker consumer demand.
“Last year was a very difficult year for the craft brewing industry, but Sydney Brewery bucked the trend, and we have been urgently seeking extra capacity to produce our craft beers,” says Schwartz.
“Our Sydney Brewery and restaurant in Surry Hills has been very popular and we believe that we can make Sydney Brewery Alexandria similarly popular with locals and visitors.
“We will be looking to sell the remainder of the Rocks Brewing stock and then start producing the Sydney Brewery range from the Alexandria site.”
Schwartz says the 20-hectolitre brewhouse in Alexandria will be critical in meeting the expected increase in demand for Sydney Brewery beers and ciders amid the company’s growth plans.
The company’s new 30-hectolitre brewhouse at Lovedale is scheduled to open by Easter, which will add to the existing 18-hectolitre brewhouse.
“We will more than double our production capacity at Lovedale in the Hunter Valley, and by the time everything is operational, our potential capacity will have increased to over half a million litres of craft beers, ciders and spirits across our various breweries,” says Schwartz.
“It was perhaps inevitable that the craft brewing industry would consolidate after years of rapid growth.”
Sydney Brewery was founded in 2005 by Schwartz who set up an 800-litre wood-clad brewhouse in the basement of the Macquarie Hotel on Wentworth Street and created beers under the Schwartz Brewery name.
In addition to its own venues, Sydney Brewery supplies a network of 15 hotels in NSW, ACT, Queensland and Victoria, in addition to a number of retail outlets.
“We are ramping up production while many craft brewers are struggling to survive, and our takeover of the Rocks Brewery operation will provide an outstanding opportunity to both increase the amount of Sydney Brewery craft beers that we produce and also revive the Alexandria location as a prime brewpub, dining, entertainment and functions venue,” says Schwartz.
“We will revamp the menu, the drinks selection and the entertainment over the next few months. The Brewpub is currently operating and will officially relaunch with its new branding and menus in mid-March."
The Schwartz Family Company was established in 1973 with its assets including Sydney Brewery, the Hunter Valley Conference & Events Centre and Blue Sky Airways. However, its key business comprises a network of hotels for the corporate and leisure market.
The company’s portfolio of 15 hotels in Sydney, Newcastle, Hunter Valley, Canberra, Melbourne and the Gold Coast has a total of 4,300 rooms operated under brands such as Sofitel, MGallery, Novotel, Mercure, Ibis, Rydges, and Hilton.
In August last year, Schwartz Family Company wrapped up the $25 million acquisition of Leura Gardens Resort in the Blue Mountains, consolidating its presence in the region and extending its management agreement with independent Australian hospitality group Trilogy Hotels.
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