LION announces proposal to close James Boag's Brewery in Launceston
LION today announced a proposal to close the James Boag’s Brewery in Launceston in November 2026.
LION today announced a proposal to close the James Boag’s Brewery in Launceston in November 2026.
Long-term decline in the national beer market has caused the brewery to run significantly under capacity for many years – it is currently operating at about a fifth of its capacity. This combined with significant cost inflation means the brewery is no longer viable.
LION CEO & Managing Director Anubha Sahasrabuddhe said: “We know this is difficult news for our Boag’s Brewery team and the broader Launceston community. 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.”
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. LION’s personal support service is available for all team members.
Tasmania remains important for LION. The James Boag’s brand will continue to be brewed in other world-class breweries in LION’s network in line with stringent quality standards. The newly reopened Boag’s Brewhouse will continue to operate as the home of the brand and LION will continue to offer its portfolio in Tasmania and to maintain a sales and hospitality team.
If the proposal is implemented, LION will:
- Reskilling Fund: Establish 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, in addition to any redundancy payments and other employee entitlements.
- Community Fund: Establish the James Boag’s Community Fund initiative offering $500,000 in funding over 5 years for partnerships and grants for grassroots organisations in Launceston and Northern Tasmania.
- Boag’s Brewhouse: Repay the $1 million grant which the Tasmanian Government contributed to the redevelopment of the Boag’s Brewhouse.
- Future of the site: Work closely and carefully with the City of Launceston and Tasmanian Government on the future of the Brewery site – ensuring we play our role to preserve its heritage while revitalising it for future generations.
- Sponsorships and events: Continue to support Tasmania more broadly through partnerships and sponsorships of sport and major events.
ENDS
For more information, please contact:
Sophie Breheny – LION Head of Corporate and Brand Communications
[email protected] | 0413 270 984