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Gold Coast-based non-alcoholic beer company Sobah, which made a splash in the national craft beer market four years ago by raising $1 million in equity crowdfunding, has been placed into voluntary administration in the latest blow for the embattled sector.
Adam Ward, of Worrells, is now in control of the company which was founded in 2017 by husband-and-wife team Clinton and Lozen Shultz before opening its own brewery in 2023.
The company says it has buckled under the pressure of “broader challenges facing the independent beverage industry” as well as a weaker consumer environment.
In a LinekdIn post late last night, the founders say the decision to appoint administrators was “not made lightly” and follows “a tough period for the independent beverage industry and the wider economy”.
However, the founders also have revealed that the brand, which was Australia’s first Indigenous-owned beer business, will not vanish from the shelves.
“While the brewery site has recently been sold and equipment is being moved on through brokers, this doesn’t mean Sobah is disappearing,” the founders say.
“Our focus remains on making sure you can continue to enjoy Sobah wherever you are.”
The Shultzes say the company’s beers are still being brewed in partnership with Black Hops Craft at its Biggera Waters brewery on the Gold Coast, following a deal secured earlier this year.
The agreement with Black Hops, a company that itself was rescued from administration last year, included a distribution arrangement.
“You’ll still find Sobah in stores,” say the Sobah founders.
“Our Tropical Lager, launched nationally in Dan Murphy’s in March, is selling strongly and is available right across Australia.
“More Sobah is on the way. We’re planning to relaunch our much-loved bush tucker range ahead of summer, so you can enjoy the unique flavours that make Sobah truly special.”
In a pushback against a recent media report citing “factual inaccuracies regarding the company’s investors, stakeholders, asset sales and the timing of administration”, the founders say the company is working to ensure that all stakeholders receive “accurate and timely information through the administrators”.
The company says its 558 equity crowdfunding investors from the 2021 capital raise will be contacted by Worrells regarding the first meeting of creditors which is scheduled for 29 September in Brisbane.
“From the very beginning, Sobah was created to celebrate First Nations culture, spark meaningful conversations, and change the way we think about drinking,” say Clinton and Lozen Shultz in their LinkedIn post which targeted its loyal customer base.
“We’re proud of what we’ve built together, and we’re committed to keeping Sobah on shelves, in fridges, and in your hands.”
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