Lion has announced a proposal to close the James Boag’s Brewery in Launceston in November 2026, a move that would end brewing at one of Australia’s oldest and most iconic brewery sites and put 42 jobs at risk.
The announcement comes after years of declining production at the site. A government grant reversed a prior decision to close the Boag’s visitor centre in 2023, but that intervention has not been enough to sustain the brewery’s long-term viability.
Lion says the facility is now running at roughly one fifth of its capacity, and that cost inflation has compounded the problem to the point the brewery is no longer viable.
“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,” Lion CEO and Managing Director Anubha Sahasrabuddhe said in a statement.
“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 proposal is subject to a consultation process with affected employees, and Lion says redeployment opportunities across its broader brewing network will be explored before a final decision is made. The company has pledged to honour all employee entitlements, including redundancy payments.
A long decline
Today’s announcement is the latest in a series of reductions at the Launceston site.
In 2016, Lion moved around 20 million litres of annual brewing volume from Boag’s to mainland facilities, a restructure that cost 39 roles.
At the time, then-managing director James Brindley framed the move as a return to the brewery’s traditional focus on the Boag’s portfolio, which he said was “still a very substantial 36 million litres.”
“This change will allow us to reconfigure the Boag’s Brewery to a size more appropriate for the Boag’s portfolio, significantly improving efficiency,” Mr Brindley said at the time.
Despite the reconfiguration Lion says has since volumes have dwindled to around a fifth of the brewery’s capacity – suggesting Boag’s volumes have fallen substantially from even that reduced base over the past decade.
Lion first acquired the James Boag’s brand in 2007 for $325 million from San Miguel Corporation. The brand’s trajectory under Lion’s ownership has been the subject of ongoing scrutiny. From being showcased at the James Boag’s marquee in The Birdcage at the Melbourne Cup Carnival in 2009, the company’s social media presence for the Boag’s brand was limited to five posts across Facebook in 2021 and 2022 combined, and three posts in three years on Instagram – a pattern that raised questions about whether the brand had been a genuine investment priority.
In January 2023 Lion announced it would close the Boag’s visitor centre before reversing the decision after the Tasmanian Government offered a million-dollar support package.
At the time, the Premier said the decision had not passed “the pub test.”
What Lion is proposing
If the closure proceeds, Lion has outlined a package of commitments:
- A reskilling fund of up to $500,000 for employees who cannot be redeployed
- A community fund of $500,000 over five years for grassroots organisations in Launceston and northern Tasmania
- Repayment of the $1 million Tasmanian Government grant that funded the Boag’s Brewhouse redevelopment
- Engagement with the City of Launceston and state government on the future use of the brewery site
Lion has confirmed the Boag’s Brewhouse – the redeveloped visitor facility – will continue to operate, and that the brand will continue to be brewed at other sites within its network.
“The James Boag’s brand will continue to be brewed in other world-class breweries in Lion’s network in line with stringent quality standards,” the company said.
Lion’s broader contraction
The Boag’s proposal is the latest in a series of closures and brand wind-downs across Lion’s portfolio.
In March 2023 Lion closed its Townsville-based Tiny Mountain microbrewery and ceased production of the brand after sales failed to grow beyond the venue. I addition to numerous other closures, Lion announced the closure of the Two Birds Brewing taproom in Spotswood, Victoria in June 2023 and ceased production of the Two Birds brand, citing a sustained sales decline despite continued marketing investment.
The Boag’s closure, if confirmed, would mark the end of brewing at a site with roots stretching back to 1881 – and would concentrate production of the brand at mainland facilities with no direct connection to its Tasmanian origins.
The decision to cease brewing in Tasmania when the brand is already in terminal decline may be an effective surrender for the brand given James Boag’s recent brand has been built on its Tasmanian provenance, especially the water it is made from.
Launching the iconic Pure Waters television commercials for Boag’s Draught in 2009, then Lion Nathan premium category director, Arno Lenior explained how using Tasmanian waters made the beer special.
“Tasmania is a highly emotive place, it conjures up imagery unlike any other area of Australia, and is viewed as pure, mystical and other-worldly,” he said.
“We loved the idea of the waters of Tasmania making things ‘better’ and having magical powers, and as a result this campaign unveils one of the many secret ingredients we use to make Boag’s Draught such a great tasting beer.”
James Boag’s woes come against a background of increased moderation that sees declining alcohol consumption overall and generational shifts away from beer consumption.
