Launceston’s Iconic Boag’s Brewery to Cease Production After 145 Years
A significant chapter in Tasmania’s brewing history is drawing to a close with the announcement that James Boag’s Brewery in Launceston will shut its doors permanently after an impressive 145 years of operation. The decision, made by the brewery’s owner, Lion, cites a protracted decline in the Australian beer market and escalating operational costs as the primary drivers for the closure.
The brewery, a long-standing pillar of the Launceston community, has reportedly been operating well below its intended capacity for many years, running at approximately one-fifth of its potential. This underutilisation, coupled with the challenging economic landscape for beer production in Australia, has led Lion to conclude that maintaining the Launceston facility is no longer commercially viable.
The closure will unfortunately lead to the loss of jobs for 42 dedicated individuals. Anubha Sahasrabuddhe, CEO and managing director of Lion, acknowledged the gravity of the announcement. “We know this is difficult news for our Boag’s Brewery team and the broader Launceston community,” Sahasrabuddhe stated. “I sincerely apologise for the negative impact this announcement will cause.”
Despite the cessation of brewing in Launceston, Lion has assured that James Boag’s beers will continue to be produced. The company plans to shift production to its other breweries located on the Australian mainland, specifically mentioning facilities in New South Wales and Queensland.
Community and Government Response
The news has understandably cast a shadow over Tasmania, with Premier Jeremy Rockliff expressing his concern. “The announcement is concerning for workers and the community,” Rockliff commented in a statement. “We are extremely disappointed with Lion’s decision. The government has been a strong supporter of the business over a number of years.” The Premier emphasised that the immediate priority for the Tasmanian government is the welfare of the affected workforce.
To support the transitioning employees, Lion has committed to establishing a $500,000 fund. This fund is intended to assist workers in upskilling and finding new employment opportunities, particularly those who cannot be redeployed within Lion’s broader operations. The company has also reaffirmed its commitment to honouring all employee entitlements, including redundancy payments for those impacted by the closure who are unable to secure alternative roles.
Beyond its workforce support, Lion has pledged a significant contribution of $1.5 million to the Launceston community. A substantial portion of this, $1 million, will be allocated to the restoration of the Boag’s Brewhouse. This iconic site is slated to remain open, continuing to welcome both locals and tourists for tours, preserving a tangible link to the brewery’s rich heritage.
A Legacy of Brewing
The James Boag’s Brewery has a storied past, with its origins tracing back to the Boags family. The family’s stewardship of the brewery continued until the year 2000, when it was acquired by the San Miguel Corporation for $92 million. Subsequently, in 2007, Lion purchased the brewery from San Miguel for a considerable $325 million. This acquisition integrated Boag’s into Lion’s extensive portfolio of Australian breweries, which also includes well-known names like Tooheys and Castlemaine Perkins (the brewer of XXXX). The closure of the Launceston facility marks the end of an era, signifying the departure of the last remaining operational brewery in Tasmania.
