James Boag's Brewery to Cease Operations in Tasmania Amid Market Challenges
Iconic brewer James Boag's to stop production in Tasmania
Image: Mail Online
James Boag's Brewery, a historic Tasmanian brewer, will stop production in Launceston by November 2023 due to a long-term decline in the national beer market and rising operational costs. The brewery's production will shift to Queensland and New South Wales, affecting 42 employees.
- 01James Boag's Brewery, established in 1881, will cease operations in Launceston by November 2023.
- 02The brewery is currently operating at only 20% of its capacity due to a long-term decline in the beer market.
- 03Parent company Lion Australia is exploring redeployment options for the 42 affected employees and offering redundancy payments where necessary.
- 04The closure will lead to the establishment of the James Boag’s Community Fund, providing $500,000 for grassroots organizations in Launceston over five years.
- 05Lion Australia will repay a $1 million grant from the Tasmanian Government related to the redevelopment of Boag’s Brewhouse.
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James Boag's Brewery, a staple of Tasmanian brewing since 1881, has announced it will cease operations in Launceston by the end of November 2023. This decision comes as the brewery has struggled with a long-term decline in the national beer market, currently operating at only 20% of its capacity. Parent company Lion Australia stated that the combination of reduced production capacity and rising costs has rendered the brewery unviable. Most of Boag's production had already transitioned to Queensland and New South Wales, but local operations will now conclude. The brewery's closure will impact 42 employees, with Lion exploring redeployment options and offering redundancy payments. In response to the closure, Lion will establish the James Boag’s Community Fund, allocating $500,000 over five years to support local grassroots organizations. Additionally, the company will repay a $1 million grant from the Tasmanian Government that was previously allocated for the brewery's redevelopment.
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The closure of James Boag's Brewery will significantly affect local employment and the economy in Launceston.
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