Lion has proposed to move production of James Boag beers out of Tasmania, with a plan announced to close the James Boag Brewery in Launceston in November, driven by long-term decline in the national beer market.
Lion stated it has been running significantly under capacity for many years, and is currently operating at about a fifth of its capacity. Combined with significant cost inflation, this means the brewery is no longer viable.
The brewery has been the home of James Boag beer since the company was founded in 1881, and received a $1.8 million upgrade in late 2024 to launch the Boag’s Brewhouse visitor centre. The upgrade was funded by $1 million from the Tasmanian government for the project, which Lion stated it would repay if the brewery was closed.
The proposed closure would impact the roles of 42 people employed at James Boag’s Brewery. Consultation conversations are now taking place with team members to work through the proposed impacts, before a final decision is made and redeployment opportunities across Lion’s brewing network are explored.
If the proposal is implemented Lion will honour all employee entitlements, including redundancy payments to those team members impacted by this proposal who are unable to be redeployed.
Tasmanian premier, Jeremy Rockliff, said Lion’s proposal to close the historic James Boag’s Brewery in Launceston will be deeply concerning for the 42 workers affected, their families, and the broader Northern Tasmanian community.
“We are extremely disappointed with Lion’s decision. The government has been a strong supporter of the business over a number of years,” said Rockliff.
“Our immediate priority is the wellbeing of the workforce. We will engage closely with Lion, the union, workers and the hospitality industry to support those impacted.”
In addition to repaying the state government grant, Lion has committed to several initiatives if the proposal is implemented, including:
- Establishing a James Boag’s Brewery Reskilling Fund of up to $500,000 which will be used to support those team members who are unable to be redeployed across Lion’s network into finding new employment.
- Establishing the James Boag’s Community Fund initiative, offering $500,000 in funding over five years for partnerships and grants for grassroots organisations in Launceston and Northern Tasmania.
- Working closely with the City of Launceston and Tasmanian government on the future of the Brewery site.
- Continuing to support Tasmania more broadly through partnerships and sponsorships of sport and major events.
The James Boag brand will continue to be brewed in other Lion breweries, and Boag’s Brewhouse will continue to operate as the home of the brand.
Lion CEO and managing director, Anubha Sahasrabuddhe, said the company knows this is difficult news for the Boag’s Brewery team and broader Launceston community.
“I sincerely apologise for the negative impact this announcement will cause,” said Sahasrabuddhe.
“This proposal is no reflection on the incredible capability, passion and commitment of our brewery team members, and the many more who have come before them, who have worked hard to operate the brewery as efficiently as possible despite decreasing volumes.”
The news follows Lion announcing a restructure of its ANZ business last September, unifying Australian and New Zealand operations under a single leadership team.
