James Boag has announced plans to close its historic Launceston, Tasmania brewery by the end of 2026, with brewing operations to be transferred to Lion facilities on the Australian mainland. The move places 42 jobs at risk and signals an end to more than 140 years of brewing at the site, which first opened in 1881 and was taken over by Scottish brewer James Boag and his son two years later.
Declining Beer Sales and Rising Costs
Lion, the parent company, said the proposal was driven by a long-term decline in the national beer market, which had left the brewery operating significantly below capacity for many years. The site is currently running at about 20 per cent capacity, while rising operating costs have further undermined its viability.
Lion CEO and Managing Director Anubha Sahasrabuddhe acknowledged the impact the proposal would have on workers and the broader community. “We know this is difficult news for our Boag’s Brewery team and the broader Launceston community,” she said. “I sincerely apologise for the negative impact this announcement will cause. 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.”
Community Reaction
The announcement has been met with disappointment from the Launceston Chamber of Commerce, which described the brewery as a key part of the city's identity. Launceston Chamber of Commerce CEO Alina Bain said it was a “sad day for many people connected to Boag’s” and the news would be deeply felt across the community.
“Boag’s is more than a brewery. It is part of Launceston’s identity and an iconic brand that has represented our city for generations,” she said in a statement. “For generations, Tasmanians have been proud that Boag’s was not just a Tasmanian brand, but a Tasmanian product – brewed in Launceston using our water, local ingredients and Tasmanian expertise. While the brand will continue, it is sad that a beer so closely associated with Tasmania will no longer be brewed here.”
Ms Bain said the announcement also reflected the mounting pressures facing businesses across Tasmania and the country. “Many businesses continue to face rising operating costs, workforce pressures, changing consumer behaviour and economic uncertainty. Today's announcement is a reminder that we cannot take jobs, investment and economic activity for granted.”
Support for Affected Workers
If the closure proceeds, Lion said it would establish a reskilling fund of up to $500,000 to help affected employees find new work if they cannot be redeployed elsewhere within the company. The company also pledged $500,000 over five years for community projects across Northern Tasmania and said it would repay the $1 million state grant used to redevelop the Boag’s Brewhouse.
Despite the planned closure, the Boag’s Visitor Centre and Brewhouse will remain open, with sales and hospitality roles retained in Tasmania – a move welcomed by the Chamber. Lion pledged to work with government on the future of the historic site and continue supporting Tasmanian sporting and major events through sponsorships and partnerships.
Lion acquired J. Boag & Son, including the brewery, for $325 million in 2008; a year later, the drinks giant became part of Japan’s Kirin Holdings.
