The Beer Baron under investigation

A man and his bicycle: humble beginnings for someone preparing to expand nationally.  What started as a weekend hobby for former airplane cleaner, Jed Clarke, has quickly become his full time career.

A year later and The Beer Baron has become a household name around its birthplace, Surry Hills.

At hours when other take away alcohol is strictly forbidden The Beer Baron home-delivers alcohol gift baskets, conjuring images of prohibition and bootlegging.  But things are not well in the world of gift baskets.  Last week, The Office of Liquor, Gaming and Racing (OLGR) began investigations into the legality of the business.

As Mr Clarke sat down at The Winery in Surry Hills hushed whispers and sly looks followed him.  With a Jameson in hand, he grinned and said: “It’s been a long week.”

After last minute approval from his lawyer, Mr Clarke began talking about the second OLGR investigation into his business.

“The reason the investigation’s happening is because of the recent media inquiries,” he said.

“The article [SMH, 2nd June] made out we were giving the middle finger to the licensing police by saying there’s nothing authorities can do to stop me because I’ve found a loophole.

“It’s a complete misrepresentation.  I run a gift basket company.  It’s not a loophole, it’s a law,” said Mr Clarke.

The gift basket exemption allows alcohol to be delivered so long as it’s under two litres, accompanied by food or flowers and presented to someone other than the intended recipient.

A spokesperson for the NSW Tourism and Hospitality Minister said: “The matter was brought to our attention following the SMH article about The Blind Pig [The Beer Baron’s main competitor], the minister then ordered an investigation and is awaiting the report.”

When asked what defines a loophole the minister’s spokesperson said: “No one has said he is operating in a loophole.

A loophole is when the law is being circumvented, the inquiry is to find out whether or not this is happening.”

OLGR spokesperson Mark Nolan said they were investigating “the method of delivery and quantities of alcohol to determine if it complies with requirements under the exemption in the Liquor Act.”

Following the June 7 SMH article ‘Last drinks for Facebook beer barons’, Mr Nolan said: “The investigation is proceeding and there is no further update at this stage.”

With plans set in motion to expand to other areas of Sydney and eventually other states, Mr Clarke said: “I’m not doing this to push the law.  First I have to work with the OLGR to prevent a market from closing that I don’t think needs to be closed.”

At the moment I employ just two full time drivers.  But if the law allows it I plan to expand in NSW and eventually other states and this will mean taking on more staff.”

When asked about the threat of $11,000 fines and a 12 month jail sentence, Mr Clarke said: “Well, if somebody told me I might get twelve months in jail for eating an apple, I’d think twice about eating it.

“I’ve been to the OLGR office, we went over all my books to make sure I’m not breaching any rules,” said Mr Clarke.

“I know that I’m not but that’s up to them to find out.”

By Christian Meagher