Sobah Beverages enters voluntary administration as craft sector headwinds mount

Sobah Beverages, Australia’s first Indigenous-owned non-alcoholic craft beer company, entered voluntary administration on 17 September 2025 after prolonged financial pressures in the independent brewing sector and broader economy. Adam Ward of Worrells was appointed administrator.

Founded in 2017 by psychologist Dr Clinton Schultz and his partner Lozen McDiarmid, Sobah launched to celebrate First Nations culture while offering alcohol-free alternatives in a market increasingly seeking healthier choices. The brand quickly gained recognition, winning Food & Drink Business’s Rising Star award in 2021, and in 2023 opened its own brewery on the Gold Coast.

Despite building strong consumer recognition and achieving national ranging earlier this year with its flagship Tropical Lager at Dan Murphy’s, the business struggled to offset rising costs, margin pressure and challenging trading conditions across the craft brewing industry.

In March 2025, Sobah consolidated brewing and distribution through a strategic partnership with Black Hops Craft at Biggera Waters. Schultz and McDiarmid have emphasised that the brand continues to trade, products remain available in the market and plans are in place to relaunch Sobah’s bush tucker range ahead of the summer period.

With 558 equity investors on its register, stakeholder interests are diverse. McDiarmid said the directors are confident that Worrells “will secure the best outcome possible” for creditors, investors, staff, and loyal customers. The administrators will now canvass options for restructuring or sale, with the continuation of brand distribution through Black Hops offering a pathway to preserve market presence while addressing the financial position.