After nearly a century and a half of brewing one of Australia’s most iconic beer brands in Tasmania, parent company Lion Australia has confirmed it will shutter all James Boag production at the Launceston site by November 2026, relocating all operations to mainland Australia. The decision, which comes as a major economic blow to northern Tasmania, will cut 42 local roles, and marks the end of a legacy that stretches back to 1881, when the brewery first opened its doors. Scottish brewer James Boag and his son assumed control of the facility just two years after its founding, and for 145 years, the brand has leaned into its Tasmanian roots, marketing its signature brews as crafted from the state’s famous pure water.
Lion’s leadership has framed the move as an unavoidable response to long-running industry challenges and cost pressures that have rendered the Launceston facility no longer financially viable. Anubha Sahasrabuddhe, Lion’s chief executive and managing director, emphasized that the closure is no criticism of the site’s current and former workforce, who have maintained efficient operations even amid years of declining output. “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,” she said in a formal statement.
The company pointed to two core factors driving the decision: a years-long slump in national beer consumption that has left the Launceston brewery running at just 20 percent of its total production capacity, and persistent cost inflation that has squeezed margins. Shipping costs have also been a growing burden for the business: as early as 2024, James Boag already shifted a portion of its production off-island to cut the $1.5 million in annual shipping fees it incurred transporting product from Tasmania to mainland markets. Moving all production to the mainland will eliminate these ongoing high logistics costs, the company confirmed.
Tasmanian Premier Jeremy Rockliff described the announcement as “extremely disappointing”, noting that the state government’s top immediate priority is supporting the 42 affected workers. “We will engage closely with Lion, the union, workers and the hospitality industry to support those impacted,” Rockliff said.
To mitigate the impact of the closure on workers and the local community, Lion has outlined a series of mitigation measures. The company has allocated $500,000 to a dedicated reskilling fund designed to help displaced employees transition into new roles across different industries. It has also committed $500,000 to a five-year community fund to support local partnerships and grants in Launceston and northern Tasmania, and will repay the $1 million the Tasmanian government previously contributed to redevelop the Boags Brewhouse. The Tasmanian government has acknowledged these commitments, welcoming Lion’s pledges to support workers and honour existing financial agreements. While production will move off-island, Lion says it will continue to brew the James Boag brand, and maintains that Tasmania remains an important part of the brand’s identity.