Grey Lynn Gin calls in liquidators: Rising excise tax on alcohol cited

"Bold, uncomplicated gin for everyone" is how this brand marketed itself.

Rising alcohol tax hit an Auckland gin business named after one of the city’s trendier suburbs.

The owners of Grey Lynn Gin, only formed three years ago, called in liquidators Damien Grant and Adam Botterill of Waterstone Insolvency, who cited that tax was one of the factors behind the failure, along with transport, storage and shipping costs.

“Bold, uncomplicated gin for everyone, distilled in the heart of Grey Lynn” is how the company marketed itself, saying it had been distilled in a suburban garage.

From July 1 this year, the excise tax on alcohol rose from 49c per litre of beverage to 53c/litre, Customs NZ says. Tax rose from $33/litre of alcohol to $35/litre of alcohol.

Grant and Botterill are trying to sell Grey Lynn Gin as a going concern. Total assets are listed at $61,000, but total liabilities are unknown.

Inland Revenue and CarbonSix Distillery of Takapuna are the only known creditors.

CarbonSix is a boutique, small-batch, craft distillery “proud to be locally sourcing all ingredients to produce organic and naturally infused spirits”. Gin, gin liqueur, rum, vodka and tailored spirits are listed as some of its products.

The company’s mission is to bring the best and most unique craft spirits to New Zealand consumers.

Jack McNally, Hannah Tarbottom and Jess Thoms own Grey Lynn Gin. McNally is the sole director.

“The company began facing issues due to the increasing costs of third-party logistics handling the storage and shipping of the business throughout 2022 and 2023,” Waterstone’s first report said.

“The combined effect of slowing demand and an increase in alcohol excise saw the company’s profit margins decrease throughout 2023. As the director saw the business becoming unprofitable, they sought to liquidate the company prior to incurring losses for the 2024 financial year,” the liquidators said.

Founders Jack McNally and Hannah Tarbottom told how they started the gin business.

“As the sun rose on 2020, our founders Jack and Hannah were in search of a bold gin that made gin the hero when mixed, as it deserved to be. They knew the opportunity was theirs to take, and distilling experimentation began almost immediately,” the company says on its website.

Grey Lynn Gin was started in their garage. Their inkling of an idea blossomed into the robust gin they said they were proud to offer.

“We make bold, uncomplicated gin for everyone to enjoy. With minimal botanicals, our hero notes shine through to create flavour profiles that draw praise from both gin enthusiasts and newcomers alike,” they said.

The gin liquidation initial report was posted on the Companies Office site the same day as Epic Brewing Company’s first report.

The liquidators of both companies are the same.

The beer business manufactured and sold its own brand nationally, but suffered financial difficulties due to poor economic conditions caused by Covid-19, and increased costs placed pressure on margins that could not be recouped in an increasingly tight consumer market, wrote Waterstone’s Grant and Botterill.

They didn’t cite the rising excise tax on alcohol in their report on the beer business.

Shareholders are Luke, Wendy and Anne Nicholas, Judith Roswell, Eleanor Tocker and Linda and Sten Hansen. Grant and Botterill’s report said it was the shareholders who contacted Waterstone.

The Waterstone liquidators are also trying to sell the beer business and it’s being kept running in the meantime. Trade creditors are owed $514,000, a statement of financial position out today showed, and known creditors’ names are listed. The ANZ Bank is the first ranking general security holder, but how much it is owed is withheld.

Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.