Boag's Brewery closure sends shockwaves through Australian beer industry
James Boag & Son will cease production at its historic Launceston brewery in November has rattled the Australian beer industry, with operators and advocates pointing to a brewing crisis of affordability that extends well beyond Tasmania.
Parent company Lion Australia confirmed it will consolidate Boag's production entirely outside the state, ending 145 years of brewing on the banks of the Tamar River.
Sam Reid, owner of Launceston's Du Cane Brewery, told the ABC he was "shocked and taken aback" by the decision, particularly given the state government funding the facility had received only two years prior.
"We feel for the staff who have lost their roles there, [it's] terrible for Launceston, terrible for the staff and their families," Reid said.
He suggested the move was less about the economics of brewing in Launceston specifically and more about the scale efficiencies Lion had already established at its Lidcombe facility in Sydney. "It's probably starting to outweigh the benefits of making beer here in Launceston," he said.
The brewery had received $1 million in state funding in 2023 to keep its visitor centre operational — money Lion has confirmed it will now repay. Reid said he hoped those funds would be redirected toward the north's growing craft beer scene, particularly as the new Spirit of Tasmania ferries come online.
"There's really a great opportunity to invest in the tourism and visitor economy side," he told the ABC. "Some of that million dollars could hopefully be used to continue to invest in the visitor economy."
For loyal Boag's drinkers, the news landed hard. Leigh Sherriff who has been drinking the brand "for about 70 years", described the closure as "disgusting", saying Boag's was "as good as any of the beers from the mainland."
Fellow patron Craig Barron was equally blunt. "It's an institution, it'll put people out of work. I can't believe it, to be honest".
Independent Brewers Association chief executive Sabrina Kunz said the Boag's closure was symptomatic of a far wider structural problem gripping the industry. She noted that around 80 breweries had closed nationally over the past two years alone.
"Our breweries are simply closing down," she told the ABC, pointing to Australia's excise tax regime — which taxes beer at a higher effective rate than wine — as a key culprit.
"Aussies want to be able to shout a round at the pub, they want to be able to host their neighbours for a barbecue and the excise tax regime is making it such that it's simply unaffordable," she said. "We have been saying for years that the cost of a pint made by a local Australian brewery is becoming unaffordable."
Federal Assistant Treasurer Daniel Mulino defended the government's record, noting a two-year freeze on draught beer excise indexation passed earlier this year, along with an increase to the alcohol manufacturers excise remission scheme. "Australia's distillers, brewers and wine producers make a significant contribution to our economy, and we'll continue to provide support for this vital industry," he said.
In contrast, Asahi Beverages, owner of Boag's longstanding Tasmanian rival, Cascade, confirmed it would not be following Lion's lead. The company announced a $13 million capital upgrade to the Hobart brewery this year, describing it as the largest investment in the site in over a decade.
Jonathan Jackson, 3rd June 2026
