The announcement that one of North America’s largest brewing equipment manufacturers is in receivership is set to have a major impact on a number of Australian breweries-in-planning.
Canada’s Diversified Metal Engineering, or DME, is a major supplier to local breweries and has installed a number of recently-opened Australian brewhouses, including Brisbane’s Felon Brewing, which opened just last week, and Cairns’ Hemingway’s Brewery.
It is understood that neither brewery is to be significantly impacted by the announcement.
The impact of the sudden closure on the Australian brewing industry is unknown, though Tim Wills, local sales manager for San Diego-based Premier Stainless Systems, said he had already fielded calls from brewers looking for alternate brewhouse suppliers.
“When things like this happen the industry has to work together to see how the impact can be minimised,” Wills said.
This news is potentially much more significant for the local industry than the 2015 collapse of Core Brewing Concepts, which left at least 10 breweries-in-planning out of pocket.
DME quotations seen by Australian Brews News set payment terms of 50 per cent deposit to initiate an order. This could see breweries with open orders up to $150,000 out of pocket on a $300,000 order.
The announcement came as a surprise to the local industry.
Stone & Wood has ordered six DME brewhouses over the past decade and co-founder Brad Rogers visited the Canadian factory earlier this year.
“It’s been a real surprise,” Rogers said.
“There were no signs that we could see, and the reverse was actually true.”
“There has been so much activity with them.”
“I feel for them,” Rogers said.
DME amalgamated with another brewhouse manufacturer Newlands in 2016.
Canadian Beer News reports Newlands has closed as well.
At the time, DME Brewing Solutions President/CEO, Peter Toombs heralded the merger.
“This amalgamation is a defining step in history for DME and NSI. Both companies have been manufacturing world-class microbrewing equipment solutions for over 25 years and are highly respected within the craft beer industry. We now have the opportunity to expand upon what both companies have built and become even stronger in the future,” Toombs said in 2016.
Local DME distributor Brian Watson from Contract Brewing International has been approached for comment.