LION confirms closure of James Boag Brewery
LION has confirmed the decision to close the James Boag Brewery in Launceston.
LION today confirmed the decision to close the James Boag Brewery in Launceston, with brewing operations to cease and the brewery to close on 6 November 2026.
This decision follows a consultation process LION has undertaken with impacted team members since announcing the proposal in early June.
The long-term decline in the national beer market has caused the brewery to operate 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 impact this decision will have.
“This decision is no reflection on the incredible capability, passion and commitment of our 42 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.
“Since announcing the proposal on 2 June, we have received a wide range of feedback from our team, the United Workers Union, members of the community and other stakeholders. We have carefully considered every piece of feedback we received.
“After considering all of the feedback received during consultation, we have concluded that the structural challenges facing the brewery cannot be overcome and have made the difficult decision to proceed with the closure.
“While we continue to engage openly and constructively with a number of parties, it is not our intention to sell the James Boag’s brand – we remain committed to both Tasmania and supporting the James Boag’s brand.
“We will continue to work closely with the City of Launceston, the Tasmanian Government and other stakeholders on the future of the brewery site, ensuring we play our part to support the preservation of the site’s heritage while transitioning custodianship to a new owner who can revitalise it for its next chapter.”
The closure will impact the roles of 42 people employed at the James Boag Brewery. LION is working directly with affected team members to provide support, explore redeployment opportunities across its brewing network and assist them through the transition.
LION will honour all employee entitlements, including redundancy payments for team members who are unable to be redeployed. Supporting our people remains our priority. We have established a comprehensive people support program to help team members transition into new employment, including outplacement support and access to the James Boag Brewery Reskilling Fund.
The James Boag’s brand will continue to be brewed in other world-class breweries across LION’s network in line with stringent quality standards. The recently reopened Boag’s Brewhouse will continue to operate as the home of the brand, and LION will continue to sell its portfolio in Tasmania and maintain local sales and hospitality teams.
As part of its commitment to supporting its people and the broader Tasmanian community, LION will:
- Reskilling Fund: Establish a James Boag Brewery Reskilling Fund of up to $500,000 to support team members who are unable to be redeployed across LION’s network in finding new employment, in addition to any redundancy payments and other employee entitlements.
- Community Fund: Establish the James Boag’s Community Fund, providing $500,000 in funding over five years through partnerships and grants for grassroots organisations across Launceston and Northern Tasmania.
- Boag’s Brewhouse: Repay the $1 million grant contributed by the Tasmanian Government towards the redevelopment of the Boag’s Brewhouse.
- Future of the site: LION will also continue to engage openly and constructively on the future of the site and seek opportunities to capture the stories, people and sounds of the brewery while creating opportunities for team members and the community to acknowledge and celebrate the 145-year legacy of the James Boags Brewery. We are also actively exploring small-scale on-island brewing opportunities within Launceston and Northern Tasmania. Should this be achievable, it will be small-scale production of some draught products for sale in the Boag’s Brewhouse and select venues in Launceston.
- Sponsorships and events: Continue to invest in Tasmania through partnerships, sponsorships, sport and major events.
ENDS
For more information, please contact:
Sophie Breheny – LION Head of Corporate and Brand Communications
[email protected] | 0413 270 984