‘Gut punch’: beer production to end at brewery’s home
After more than 140 years, the production taps at the home of James Boag’s beer will be closed.
Owner Lion, a subsidiary of Japanese conglomerate Kirin, blamed a decline in beer sales across the country as a reason for the closure of its brewery in Launceston, northern Tasmania.
The brewery opened in 1881 and two years later Scotsman James Boag and his son took over.
Lion said the brewery was currently operating at about a fifth of its capacity and would close in November, with production of James Boag resuming on the Australian mainland.
“The long-term decline in the national beer market has resulted in the brewery operating significantly below capacity for many years,” it said in a statement Tuesday.
“This, combined with severe cost inflation, means the brewery can no longer survive.”
James Boag’s shifted some production from its brewery to mainland Australia in 2024 and said it was spending $1.5 million a year on shipping from Tasmania.
The company said 42 jobs at the brewery would be “impacted” and re-hire opportunities would be discussed with staff.
A newly renovated brewery will continue to operate on the property, where the sales and hospitality team is based.
“We know this is difficult news for our Boag’s brewery team and the wider Launceston community,” said Lion CEO Anubha Sahasrabuddhe.
“I sincerely apologize for the negative impact this announcement will have.”
The announcement was not a reflection of the talent, passion and dedication of the brewery team members and said the rights of all employees would be respected.
Lion will establish a $500,000 fund to reskill workers, give $500,000 to grassroots organizations in Tasmania over four years and repay a $1 million state government grant spent on the brewery redevelopment.
Prime Minister Jeremy Rockliff said Lion’s decision was extremely worrying and extremely disappointing.
“The government has been a strong supporter of this for a number of years,” he said.
“Our immediate priority is the welfare of the workforce. We will work closely with Lion, the union, workers and the hospitality industry to support those affected.”
Labor MP Janie Finlay said the closure would be a “gut punch” for Launceston and the workers who have kept one of Tasmania’s most iconic brands afloat for generations.
