Forty-two jobs will be lost as James Boag, the iconic Tasmanian beer brand, ceases production at its historic Launceston brewery. Parent company Lion Australia announced the shift of production to mainland Australia by November 2026, citing high shipping costs and a long-term decline in the national beer market.
End of an Era After 145 Years
The brewery, which opened in 1881 and was taken over by Scottish-born James Boag and his son two years later, has been a Tasmanian institution for nearly 145 years. It marketed itself as brewing beer “from the pure waters of Tasmania.” However, Lion Australia stated that the brewery has been running significantly under capacity for years, currently operating at about one-fifth of its capacity. Combined with cost inflation, the facility is no longer viable.
Production in Tasmania will cease from November 2026, and the brand will continue to be brewed on the mainland. The decision comes after a 2024 trial where some production was moved to reduce the $1.5 million annual shipping costs.
Government and Community Response
Tasmanian Premier Jeremy Rockliff called the announcement “extremely disappointing,” emphasizing that the immediate priority is supporting the affected workforce. “We will engage closely with Lion, the union, workers and the hospitality industry to support those impacted,” he said.
Lion CEO Anubha Sahasrabuddhe acknowledged the difficulty for employees and the Launceston community, stating, “This proposal is no reflection on the incredible capability, passion and commitment of our brewery team members.”
Support for Affected Workers
Lion has established a $500,000 reskilling fund to help the 42 displaced workers transition to new employment. Additionally, a $500,000 community fund over five years will honor partnerships and grants in Launceston and Northern Tasmania. Lion will also repay $1 million to the Tasmanian government, which had contributed to the redevelopment of the Boags Brewhouse. The state government welcomed these commitments.
The closure marks a significant loss for Tasmania’s brewing heritage, but Lion insists that the James Boag brand remains important to the company and will continue to be produced on the mainland.
