Collapsed James Boag’s brewery handed lifeline after ‘unexpected’ decision to close
A historic Tasmanian brewery has been handed a potential lifeline after it flagged plans to close down and stop producing beer due to an unsalvageable slump in beer sales.
James Boag’s in Launceston announced it would shut down its 145-year-old brewery last month, citing “long-term decline in the national beer market” and spiralling costs for the decision to close.
The James Boag’s brewery has been operating in Tasmania for 145 years. Tamara Voninski
The closure was expected to result in 42 people losing their jobs, the company said.
Tasmanian Premier Jeremy Rockliff has since stepped in and revealed the state government will explore purchasing the site.
Rockliff said the Tasmanian government met with Boag’s Japanese parent company, Kirin, to discuss a sale and that “in-principle” support was given for the offer.
“This site is a part of our cultural fabric and any development of it must be managed with the utmost care,” Rockliff said in a statement on Wednesday.
“We do not want to see a buyer come in and effectively land bank the site so it remains idle for the next 20 years.”
Rockliff did not indicate how much the state government would be willing to pay to secure ownership of the brewery or what the site would be used for.
Boag’s will no longer brew beer at the site, even if the government buys the establishment.
Australian owner Lion said production would shift to its breweries on the mainland, including NSW and Queensland.
The Tasmanian budget is in a relatively weak position, and is projected to record the lowest economic growth in the country over the next decade.
A recent Deloitte report described the state’s economic performance as “woeful”, after growth slowed to 0.9 per cent in 2026–27.
Deloitte said Tasmania “delivered a woeful result in the first quarter of 2026, with investment retreating faster than the James Boag Brewery”.
Premier Jeremy Rockliff said the Tasmanian government was exploring purchasing the site. Alex Ellinghausen
Growth is forecast to hit an average of 1.7 per cent per year until 2036, the smallest rate of any state and territory in Australia.
Rockliff said the government sat down with the Launceston community on Wednesday to discuss ideas for the site and how to keep it thriving.
It is also liaising with Boag’s workers and put their questions and the community’s concerns to Kirin, he added.
“I heard clearly from the workers about how this unexpected decision has impacted them and their families, and the need for more clarity from Kirin and Lion,” Rockliff said.
Lion previously said the “long-term decline” in Australia’s beer market and rising costs meant it was no longer in its interests to keep the brewery open.
“Long-term decline in the national beer market has caused the brewery to run significantly under capacity for many years – it is currently operating at about a fifth of its capacity,” the company said in a statement.
“We know this is difficult news for our Boag’s Brewery team and the broader Launceston community,” Lion CEO and managing director Anubha Sahasrabuddhe added.
“I sincerely apologise for the negative impact this announcement will cause.”
Beer company Lion said James Boag’s would be brewed on the mainland. Supplied
The company said it would establish a $500,000 fund to help upskill any workers who cannot find new roles in other areas of the company.
It also pledged to give $1.5 million back to the local community, including $1 million to restore the Boag’s Brewhouse, which would still be open for tours to locals and tourists.
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