James Boag & Co. to Cease Brewing in Launceston, 42 Jobs Lost
Brewer James Boag & Co., owned by Lion Australia, will cease beer production at its Launceston, Tasmania, facility by November 2023. The company announced that production will be relocated to other Lion breweries on the Australian mainland. The closure will result in the loss of 42 jobs.
Timeline and Context
The Launceston brewery, established in 1881, has been operating at approximately 20% of its capacity. Lion Australia cited a long-term decline in the national beer market and significant cost inflation as factors contributing to the decision.
Production for the Tasmanian market, which had been maintained locally after mainland production was previously shifted, will now be transferred to other Lion facilities. Industry reports indicate that the Lidcombe brewery in Sydney is a likely destination for the relocated production.
Economic and Community Impact
The closures of the Boag's brewery and the Hawthorn Football Club's Launceston home games (scheduled to end in 2027) have been cited by local officials as representing a combined economic loss. Launceston City Councillor Alex Britton estimated the annual loss could exceed A$50 million. Launceston Chamber of Commerce CEO Alina Bain stated the immediate focus is on supporting affected workers and assessing supply chain impacts.
"A real kick in the guts."
— Launceston Mayor Matthew Garwood
Employment and Support
Lion Australia will begin consultations with the 42 employees affected by the production cessation. Adrian Hinds, an employee of nearly 23 years, expressed uncertainty about his future employment. Federal MP for Bass Jess Teesdale stated expectations that Lion will honor all worker entitlements. The Department of Employment and Workplace Relations is available to provide support.
"Devastating."
— Launceston Chamber of Commerce CEO Alina Bain
Future of the Site
The brewery occupies a heritage site overlooking the North Esk River. Lion CEO Anubha Sahasrabuddhe confirmed that redevelopment opportunities for the Launceston site will be explored. The Boag's Brewhouse visitor center will remain open, offering tours and beer brewed at mainland Lion facilities.
Community and business leaders have discussed potential redevelopment options including a conference centre, hotel, microbrewery hub, or housing. Developer Errol Stewart estimated that revitalization could require approximately A$100 million and 10 years.
Government and Financial Matters
In 2023, the Tasmanian government provided Lion Australia with a A$1 million loan to support the visitor centre and tours. Lion will repay this amount. The Tasmanian government announced it will reinvest the returned funds into Launceston and northern Tasmania.
"The James Boag's brand will continue to be brewed at other Lion breweries."
— Lion CEO Anubha Sahasrabuddhe
Industry Context
Independent Brewers Association chief executive Sabrina Kunz stated that approximately 80 breweries have closed nationally over the past two years, citing rising costs. Hops Products Australia chief executive Owen Johnston noted structural problems in the industry, including declining beer volumes since the 1970s. Asahi, owner of the Cascade Brewery in Hobart, confirmed it remains committed to its Tasmanian operations and has invested A$13 million in upgrades.
Statements from Stakeholders
- Launceston Mayor Matthew Garwood: Described the decision as a "real kick in the guts."
- Tasmanian Premier Jeremy Rockliff: Expressed disappointment and stated the government would focus on supporting affected workers.
- Launceston Chamber of Commerce CEO Alina Bain: Called the news "devastating."
- Lion CEO Anubha Sahasrabuddhe: Confirmed the James Boag's brand will continue to be brewed at other Lion breweries.
- Independent Brewers Association chief executive Sabrina Kunz: Called for alcohol tax reform.
- Local brewery owner Sam Reid: Expressed surprise given the recent state funding.