Lion has announced a proposal to close the James Boag’s Brewery in Launceston in November 2026, due to long-term decline in the national beer market.

James Boag established his brewery in Launceston in 1881. Lion Nathan bought the brewery in 2008 from San Miguel for $325 million.

The company said the decline had caused the brewery to run significantly under capacity for many years – it is currently operating at about a fifth of its capacity. Combined with significant cost inflation, Lion said this 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 negative impact this announcement will cause.

“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 impact the roles of 42 people employed at James Boag’s Brewery.

The newly reopened $2.4 million Boag’s Brewhouse will continue to operate as the home of the brand. Lion was given a $1 million grant by the Tasmanian Government towards the recent redevelopment of the Boag’s Brewhouse, which it said it will repay if the proposal goes ahead.

Launceston Mayor Matthew Garwood told ABC News the announcement was a “real kick in the guts”.

“It is very much aligned to Launceston and very much aligned to Tasmania,” he said.

Lion said consultation conversations are now taking place with team members to work through the proposed impacts, before a final decision is made and redeployment opportunities across Lions brewing network are explored.

If the proposal is implemented Lion said it will honour all employee entitlements, including redundancy payments to those team members impacted by this proposal who are unable to be redeployed.

The company said Tasmania remains important and the James Boag’s brand will continue to be brewed in other breweries in Lion’s network.

If the proposal is implemented, Lion will:

• Reskilling Fund: Establish a James Boag’s Brewery Reskilling Fund of up to $500,000 which will be used to support those team members who are unable to be redeployed across LION’s network into finding new employment, in addition to any redundancy payments and other employee entitlements.
• Community Fund: Establish the James Boag’s Community Fund initiative offering $500,000 in funding over 5 years for partnerships and grants for grassroots organisations in Launceston and Northern Tasmania.
• Future of the site: Work closely and carefully with the City of Launceston and Tasmanian Government on the future of the Brewery site – ensuring we play our role to preserve its heritage while revitalising it for future generations.
• Sponsorships and events: Continue to support Tasmania more broadly through partnerships and sponsorships of sport and major events.