What started as a passion project for Rhythm and Brews Brewing Company owner Andrew Byer has quickly become a financial nightmare over the past year.
Having been a home brewer in the past, Byer decided to open his own brewery in 2018. It was a venture he took on while also working full-time as a firefighter.
But late last month the Bishop Street brewery announced on its Facebook page that its doors were closing for good, citing rising costs and diminishing returns.
Now, Byer is on the hunt for a new owner to take over the space while trying to sell off the equipment to mitigate any further losses for a business he says he invested every dollar of profit back into.
His is the latest local brewery to close up shop following Barncat Artisan Ales in August.
Also in the Preston area, Reverence Barrel Works is listed as permanently closed after last posting on Facebook about a January closure for "housekeeping." A comment asking if it went out of business has gone unanswered.
"COVID knocked us all down," Byer said.
"I say a lot of bars, restaurants and breweries are in palliative care. We're all struggling. It's not anyone's fault, it's inflation."
For example, Byer says his insurance over the past year, with no claims, went from $8,000 to $25,000. When he inquired as to why the massive hike, he was told part of the reason was his hours lasting until 2 a.m. When he rectified the issue and began closing at 12 a.m., his insurance stayed the same.
Add in the increased cost of grain, which he says has doubled, and it was a recipe for disaster.
Aside from costs, inflation had also started to keep people away as many have looked to pinch pennies to stay afloat, often cutting out leisure activities along the way.
"You try to break that threshold of the $10 pint, good luck," Byer said of having to raise prices to keep up.
"It's been in people's minds for so long they won't pay $10. With costs you're going to have to start seeing that and I don't think people want to."
The brewery became known for their live shows and musical acts over the past five-plus years, something Byer says generated roughly 90 per cent of its revenue. When the COVID-19 pandemic forced people into lockdown, that money disappeared.
But then there was a glimmer of hope in 2022 and surprisingly the business had their best year ever.
Byer believes he should've expected a bit of a downturn coming into this year as the excitement of social gatherings wore off and inflation grew, but he didn't foresee the extent of the financial struggles on the horizon.
"I thought we were good," he said heading into the year.
"Then January was a bad month, then February was a bad month. In July we did 20 per cent of the sales we did last year."
Still remaining on the hook for loans and other costs associated with the business, he's been busy trying to find a solution.
He even put it up for sale at under market value. No bites. The equipment he tried to sell for "peanuts" didn't even garner a nibble.
The entire process has caused him incredible amounts of stress as he tries to figure out what's next.
"I'll probably have to claim bankruptcy, which I never thought I would have to do for a passion project," he said.
"It's seven years of hell coming up."
