The man, Xavier "Snow" Carey, 54, who worked as a general hand at the hotel, died after he was believed to have been overcome by carbon dioxide fumes in the cellar and collapsed soon after 7am yesterday.

A beer delivery driver, who was working with Mr Carey, made several attempts to get him out of the cellar but was affected by fumes each time and had to leave. The driver, who police said was a 45-year-old Corio man, notified emergency services.

CFA members from Birregurra and Colac equipped with breathing apparatus later entered the cellar to retrieve Mr Carey.

Ambulance officers were unable to revive him.

The delivery driver was taken to Colac hospital for observation and later released.

Birregurra Post Office licensee Heather Johnson said Mr Carey was a quiet man who had worked at the hotel for about a year.

"It's a shock. It's bad for everyone," Ms Johnson said of the effect on the small township.

Mr Carey lived with a partner on Birregurra's outskirts and had been "a homebody," Ms Johnson said.

It had been Mr Carey's job to open the hotel in the mornings, she said.

Mr Carey had lived in the Birregurra area for up to four years and had previously been a road worker.

He had come from a big family in the Warrnambool area, she said.

WorkSafe spokesman Michael Birt said Mr Carey had possibly been overcome by carbon dioxide that had leaked from inside the cellar.

WorkSafe was investigating the incident, he said.

Detective Senior Constable Chris Potter of Colac police said he was unable to confirm speculation that Mr Carey might have knocked a carbon dioxide canister in the cellar, causing it to leak.

He said police were awaiting a report after the WorkSafe investigation.

CFA members took air quality readings of the cellar after Mr Carey was taken out and found the oxygen levels were lower than needed to sustain life.

CFA units from Birregurra, Colac, Deans Marsh and Winchelsea attended the incident .