Lion has announced South Australia’s West End Brewery will close in June 2021. The long-term decline of the Australian beer market, the site operating below capacity and rising costs made the brewery no longer viable.
Lion said it had been operating below full production capacity for some time and that the decision was made to ensure the company had a sustainable brewing network into the future.
Per capita beer consumption over the last decade has dropped by around 20 per cent, it said.
Our input costs have continued to rise against this backdrop of declining volume, and a further drop in draught beer sales as a result of the pandemic.
“This is no reflection on the dedication or capability of our team at West End and their contribution to this brewery and our brands over many years.
“We recognise this is very difficult news and it comes at a particularly challenging time for our people,” the company said in a statement.
Around a third of the team would remain in South Australia across sales and sponsorship roles.
