The future of the iconic James Boag’s beer brand and its Launceston brewery has become a point of contention, with its owner, Lion Australia, stating the brand is not for sale while simultaneously indicating openness to offers. This mixed messaging has caused confusion among workers and prompted calls for government intervention to secure a buyer and preserve local production.
Conflicting Statements Emerge Over Boag’s Future
Lion Australia, the multinational owner of the James Boag’s brewery, has issued a statement refuting claims made by the United Workers’ Union (UWU) that the brand and the brewery are on the market. However, a letter from Lion to the UWU, dated June 25, appears to signal a willingness to consider offers for both the brewery and the brand. While Lion asserts that selling the brand is not its primary intention, it has confirmed it would entertain expressions of interest.
The Launceston brewery, a significant part of Tasmania’s industrial and cultural landscape for 145 years, is slated for closure on November 6. This decision, attributed by Lion to economic factors and a long-term decline in the national beer market, will end local production in Tasmania. The brewery is currently operating at approximately one-fifth of its capacity, a situation exacerbated by significant cost inflation, rendering it unviable, according to the company.
James Boag’s beer, however, will continue to be brewed on the Australian mainland, as production of many of Lion’s brands, including Boag’s, was moved interstate in previous years. The original Launceston brewery’s operations were primarily focused on supplying the Tasmanian market.
Union Urges Government Action to Find a Buyer
The United Workers’ Union, representing around 40 workers whose jobs are at risk due to the brewery’s closure, is actively seeking government assistance to find a suitable buyer. Ben Dudman, an organiser for the UWU, has called upon Tasmanian Premier Jeremy Rockliff and the state government to leverage their connections and influence, drawing parallels to previous successful efforts to secure new ownership for the King Island Dairy and the Liberty Bell Bay manganese smelter.
“The premier needs to use all his connections and influence to find a sale pathway,” Mr. Dudman stated, urging the government to allocate similar resources to finding a buyer for Boag’s as was done for other struggling Tasmanian enterprises. “He needs to use the same resources used for King Island and Liberty Bell Bay to keep the brewery open until a new buyer is secured.”
Premier Rockliff has not definitively committed to actively seeking a buyer but has indicated his intention to travel to Japan to meet with Lion Australia’s parent company, Kirin. His stated focus remains on supporting the affected workers through the transition period. “Our focus is on the workers and to ensure that we support them in the transition,” Mr. Rockliff said. “What I’ll be doing is going to the parent company in Japan to meet with them to ensure that in this transition the property and indeed the Tasmanian northern economy is supported.”
Lion Australia has committed to investing in community and reskilling funds for the workers impacted by the closure.
Details from the Letter and Company Statements
The union’s confidence in Lion’s willingness to sell stems from a letter that explicitly states the company’s position. “The company remains open to discussions with any viable purchaser for the brewery and/or the Boag’s brand and we have, and will continue to, engage openly with interested parties,” the letter reads. It further clarifies that while Lion is not actively seeking expressions of interest, it would “consider any credible proposal to purchase the brewery or the Boag’s brand.”
In a subsequent statement, Lion’s chief executive, Anubha Sahasrabuddhe, reiterated that the sale of the brand was not the company’s intention. “While we continue to engage openly and constructively with a number of parties, it is not our intention to sell the James Boag’s brand,” Ms. Sahasrabuddhe said. She added that the company would work with local and state government stakeholders on the future of the brewery site itself, excluding the taproom. The Boag’s Brewhouse, the public-facing taproom and museum, is expected to remain operational.
Mr. Dudman expressed frustration with what he perceived as a shifting stance from Lion, stating, “I don’t appreciate being called a liar.” Despite the company’s public statements, it is understood that the wording of the letter accurately reflects Lion’s willingness to consider proposals for the brand and the Brewhouse.
Economic Impact and Lion’s Rationale for Closure
The decision to close the Launceston brewery, announced in June, was met with concern regarding its potential impact on the local economy. The UWU has highlighted that the closure affects not only the direct employees but also has ripple effects on local tourism, hospitality, and the broader northern Tasmanian economy. The union initiated a petition to encourage Lion Australia to sell the brand and brewery, which reportedly garnered 3,000 signatures.
Lion Australia’s rationale for closing the brewery centers on long-term economic viability. The company points to a sustained decline in the national beer market, leading to the brewery operating significantly below capacity for years. Combined with rising operational costs, this has made the facility unsustainable, according to the company’s assessment.
What Lies Ahead
With the brewery’s closure set for November, the immediate future involves supporting the affected workforce. Premier Rockliff’s planned meeting with Kirin in Japan aims to secure assurances for the region’s economic future. Meanwhile, the union continues its advocacy for a buyer, hoping to secure the future of the James Boag’s brand and its Launceston heritage. The Boag’s Brewhouse will continue to operate, but the end of local production marks a significant shift for the historic Tasmanian beer brand.
