LION has announced a proposal to close the James Boag’s Brewery in Launceston in November 2026, citing long-term declines in the national beer market and ongoing cost pressures.
According to the company, the brewery has been operating significantly below capacity for many years and is currently running at about one-fifth of its capacity. LION said the combination of reduced production volumes and significant cost inflation had resulted in the brewery no longer being commercially viable.
LION CEO and Managing Director Anubha Sahasrabuddhe acknowledged the impact of the proposal on employees and the local community.
“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,” Sahasrabuddhe said.
“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 affect 42 employees at the brewery.
LION said consultation discussions are now underway with employees to consider the potential impacts of the proposal before a final decision is made. The company said it would also explore redeployment opportunities for affected workers across its brewing network.
If the closure proceeds, LION said it would honour all employee entitlements, including redundancy payments for employees who are unable to be redeployed. The company added that its personal support service is available to all team members.
LION said Tasmania would remain an important market for the company and that the James Boag’s brand would continue to be brewed at other breweries within its network in accordance with its quality standards.
The company also stated that the recently reopened Boag’s Brewhouse would continue to operate as the home of the brand, while LION would maintain its sales and hospitality presence in Tasmania.
As part of the proposal, LION outlined a number of commitments should the closure proceed. These include establishing a James Boag’s Brewery Reskilling Fund of up to $500,000 to assist employees who are unable to secure redeployment within the company in finding new employment.
The company also proposed creating a James Boag’s Community Fund, providing $500,000 over five years through partnerships and grants for grassroots organisations in Launceston and Northern Tasmania.
In addition, LION said it would repay the $1 million grant provided by the Tasmanian Government for the redevelopment of the Boag’s Brewhouse.
Regarding the future of the brewery site, the company said it would work with the City of Launceston and the Tasmanian Government to preserve the site’s heritage while considering opportunities for its future use.
LION also said it would continue supporting Tasmania through its existing partnerships, sponsorships and major events commitments.
A final decision on the proposed closure has not yet been made and remains subject to the consultation process currently underway.
