Motueka-based craft brewery Hop Federation will wind down its operations next month in another blow for the local industry.

Its owner, the Māori food and beverage company Kono, said the decision followed a strategic review.

“Hop Federation has always been about great beer, good people, and being part of something local and meaningful,” said Kono general manager Marina Hirst Tristram.

“This decision doesn’t reflect the [work] of our team or the quality of our beer – it’s about ensuring our businesses are values-aligned, positive financial contributors and have future-focused viability.”

Kono said Hop Federation navigated a changing landscape over the past few years, including rising costs and evolving consumer habits.

“While it’s sad to say goodbye, we’re proud of the team and what they’ve created – really great beer,” said Hirst Tristram.

Hop Federation was started by Simon and Nicki Nicholas in 2013 before being acquired by Kono in 2020.

The company currently employs five people.

Kono said it was working closely with the team to support them through the transition.

Hop Federation will continue brewing for the coming weeks, while its award-winning brews will continue to be distributed in both kegs and cans across New Zealand until 2026.

The brewery was recently up four golds at the NZ Brewers Guild Awards for its Pilsner, Lager, Hazy IPA and seasonal NZH-109.

The craft beer sector has been rocked by the closure of several high-profile brewers over the past couple of years.

Auckland business Cowabunga went into liquidation last year, with liquidator Damien Grant citing a “crowded market”.

Deep Creek was placed into liquidation in October 2023. A recent liquidator’s report said ASB had recovered 60% of the brewery’s debt after an asset fire sale, but all other creditors were still collectively owed about $1.4 million.

Meanwhile, Epic Brewing Company went into liquidation after experiencing financial difficulties because of poor economic conditions. A buyer was found a month later.