New brewery for Sydney

Barons Brewing has announced a partnership with Independent Liquor Group (ILG) where Barons will build a state-of-the-art, domestic brewing facility at ILG’s Sydney warehouse. The strategic alliance will allow for both parties to capitalise on operational profitability while offering a greater range of products at the most competitive pricing possible.

“Building our own brewery is a major move for Barons. The retail liquor market is crying out for another serious competitor and the Barons/ILG brewery will be there,” says Barons' founder, Scott Garnett. “ILG is one of the most respected distributors in the industry and this partnership is going to have a serious impact on the future of the beer business.”

By locating the brewery at the heart of the ILG distribution centre, Barons will realise massive benefits in terms of reduced logistics expenses and time to market.

The goal for the Barons Brewery at ILG is to concentrate on continued growth in domestic market share and increasing brand strength. Barons will build, own and manage the brewery, while ILG will provide the site and distribution. The venture will enable both companies to produce a wider variety of products at better margins, offer exclusive brands and benefits to ILG members and continue to grow a network of loyal and dedicated partners.

“By locating the brewery at ILG, Barons is now in control of its own destiny and will be a serious player in the domestic beer industry,” says Sean Neylon, founding Director of Barons.

The new brewery will create significant local jobs while validating the resurgence of Australian-made products. “This is an important initiative that will benefit consumers through a more competitive Australian landscape - particularly important considering the ever increasing takeovers of our major brewers by foreign owners,” says Garnett.

The Barons brewery will be built on site at ILG’s Erskine Park facility. The $30m+ project will have the capacity to produce 250,000 hectolitres of beer per year and accommodate a 100-200 hectolitre brew house, translating to approximately 3.15 million cases of packaged beer per year. Based on average industry numbers, if the Barons Brewery at ILG produced 3 million cases in the first year, it would equal $66m in turnover and $24m in gross profit.

The brewery will be built by a team of Belgian engineers who are responsible for some of the most technologically advanced breweries in the world. The team will be led by Willem Van Herreweghen, Director of Quality & Business Development for Palm Breweries. Willem brings with him nearly 30 years of experience with some of the most internationally recognised beer companies, including Stella Artois and Trappists of Rochefort. Building of the Barons brewery at ILG will commence in the first quarter of 2010 with a target to begin brewing by the end of next year.