James Boags Brewery in Tasmania set to close after 145 years
The final brewery in Tasmania is set to close, with the James Boags Brewery in Launceston to shut its doors after 145 years of production.
Lion, the owner of James Boags, 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.
The brewery has been operating in Tasmania for 145 years. Tamara Voninski
“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.
The closure would result in 42 people losing their jobs, the company said.
“We know this is difficult news for our Boag’s Brewery team and the broader Launceston community,” Lion CEO and managing director Anubha Sahasrabuddhe said.
“I sincerely apologise for the negative impact this announcement will cause.”
Lion said James Boags beers would continue to be brewed by the company, though production would now be shifted to its breweries on the mainland, including in New South Wales and Queensland.
Tasmanian Premier Jeremy Rockliff said the announcement was “concerning” for workers and the community.
“We are extremely disappointed with Lion’s decision. The government has been a strong supporter of the business over a number of years,” he said in a statement.
“Our immediate priority is the wellbeing of the workforce.”
The company said it would establish a $500,000 fund to help upskill any workers who are not able to find new roles in other areas of the company.
“Lion will honour all employee entitlements, including redundancy payments to those team members impacted by this proposal who are unable to be redeployed,” the company added.
Premier Jeremy Rockliff said the decision was "concerning" and "disappointing". Alex Ellinghausen
It also pledged to give $1.5 million back to the local community, including $1 million to restore the Boags Brewhouse, which would still be open for tours to locals and tourists.
James Boags had been run by members of the Boags family until 2000, when it was purchased for $92 million by the San Miguel Corporation.
It sold the brewery to Lion in 2007 for $325 million, becoming one part of the company’s holdings in Australia, which also includes Tooheys and Castlemaine Perkins.
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