Iconic Tasmanian Brewery to Cease Production, Leaving a Void in Launceston
A significant chapter in Tasmania’s brewing history is set to close as renowned northern brewery, James Boag, announces it will cease production within the state by November. The decision by parent company Lion Australia marks the end of an era for a brand deeply intertwined with the identity and economy of Tasmania, particularly its northern city of Launceston.
For over 140 years, James Boag’s has been synonymous with the “pure waters of Tasmania,” a marketing slogan that has resonated with consumers nationwide. However, this deep connection to its Tasmanian roots will now be severed in terms of production. Lion Australia has confirmed that while Boag’s products destined for the mainland have already been shifted, brewing for the Tasmanian market has also been halted.
A Declining Market and Rising Costs Spell the End of an Era
In a statement released by the company, the reasons behind this significant decision were attributed to a prolonged and substantial decline in the national beer market. This has led to the brewery operating significantly below its capacity for many years, reportedly at only about a fifth of its potential. Compounding these market pressures are escalating cost inflations, making the Launceston brewery no longer a viable operation.
The brewery first opened its doors in Launceston in 1881, establishing itself as a cornerstone of the local community and economy. The closure, scheduled for November, represents a stark departure after an unbroken run of 145 years.
“A Real Kick in the Guts” for Launceston
Launceston Mayor Matthew Garwood expressed his profound disappointment, describing the brand’s departure as “a real kick in the guts” for the city.
“The Boag’s story is Launceston’s story,” Mr. Garwood stated in an interview. “It is very much aligned to Launceston and very much aligned to Tasmania.”
He further emphasised the significant blow this would represent to both the Launceston and wider Tasmanian economies, expressing deep concern for the 42 employees who will be affected by the decision.
Future of Boag’s Brand and Local Operations
Despite the cessation of production in Tasmania, Lion’s chief executive and managing director, Anubha Sahasrabuddhe, assured that the James Boag’s brand would continue to thrive.
“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,” Ms. Sahasrabuddhe explained.
Consultations are currently underway with the affected Launceston employees. The company has also indicated that redevelopment opportunities for the site will be explored. Crucially, the popular Boag’s Brewhouse in Launceston is set to remain operational, and Tasmanians will still be able to purchase Boag’s beer, albeit brewed on the mainland.
In a related development, Lion Australia announced it would repay a $1 million loan provided by the Tasmanian government in 2023. This funding was originally intended to support the continued operation of the Launceston brewery’s visitor centre and tours.
Workers “Blindsided” by the Decision
The United Workers Union has voiced strong criticism, with representative Amy Brumby stating that brewery employees were completely blindsided by the announcement.
“We’ve had no discussions with Boag’s over the future of the brewery in Tasmania,” Ms. Brumby told ABC’s Tasmanian Country Hour. “We found out at 8.30 this morning, when we received an email from management.”
She described the mood among the workers as “absolutely devastated,” with many having dedicated over two decades of their careers to the Launceston brewery.
- The closure will result in a substantial number of brewers and technicians facing unemployment come November.
- Workers have been offered a list of vacancies for positions located in Victoria and New South Wales, a prospect that has been met with shock.
The Tasmanian Chamber of Commerce and Industry echoed the sentiment, with acting chief executive Colleen Reardon highlighting the challenges faced by Australian manufacturers.
“And the importance of Tasmanian governments, of all colours and levels, including local government, doing everything they can to make sure that Tasmania is as competitive a place as possible to do business,” Ms. Reardon commented.
Government Expresses Disappointment and Pledges Support
Tasmanian Premier Jeremy Rockliff conveyed his government’s “extreme disappointment” with Lion’s decision. He reiterated that the government had consistently been a “strong supporter of the business” over many years.
“Our immediate priority is the wellbeing of the workforce,” Mr. Rockliff stated. “We will engage closely with Lion, the union, workers and the hospitality industry to support those impacted.”
Federal Labor MP for Bass, Jess Teesdale, emphasised the expectation that Lion would “honour all entitlements” for the retrenched workers. She also confirmed that affected employees would have access to support services through the Department of Employment and Workplace Relations to aid in their transition to new employment. Ms. Teesdale also expressed satisfaction that the Boag’s Brewhouse would continue to operate and that the company would collaborate with government bodies regarding the future of the brewery site.
A Deeply Felt Loss for Tasmania’s North
Alina Bain, chief executive of the Launceston Chamber of Commerce, described the news as “devastating” for the northern region of Tasmania.
“It’s such an iconic brand in Launceston, and it’s going to be felt very deeply,” Ms. Bain remarked. “It’s really difficult news, and we’re just processing it now.”
She acknowledged the ongoing challenges within the beer market, characterised by a sustained decline, exacerbated by rising operational costs, which have created significant difficulties for businesses across the sector. The impact on the 42 local employees, she noted, would be “incredibly challenging.”
