Lion denies agreed sale of James Boag's brand amid union dispute
The multinational owner of Tasmania's James Boag's brewery has denied agreeing to sell the iconic brand, contradicting claims from the union representing brewery workers.
The United Workers Union (UWU) said Lion Australia had agreed to sell both the Boag's brand and its Launceston brewery. Lion disputed this, stating it was "not our intention to sell the James Boag's brand." However, a letter from Lion to the UWU dated June 25, seen by the ABC, had signalled openness to selling both the brewery and the brand.
Lion, which bought the Launceston brewery for $325 million in 2007, confirmed it will shut the site on November 6, ending 145 years of local production. Boag's beer is already brewed on the mainland, with the Launceston site's role limited to the Tasmanian market.
UWU organiser Ben Dudman, representing about 40 at-risk workers, called on Premier Jeremy Rockliff to help find a buyer, drawing comparisons to other state interventions: "The premier needs to use all his connections and influence to find a sale pathway," and "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."
Rockliff did not commit to that request, telling the ABC he would travel to Japan to meet Lion's parent company, Kirin. "Our focus is on the workers and to ensure that we support them in the transition," he said, adding he would work "to ensure that in this transition the property and indeed the Tasmanian northern economy is supported."
The letter supported the union's claims, stating: "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," adding Lion would "consider any credible proposal to purchase the brewery or the Boag's brand."
Lion later clarified only the brewery site, not the taproom or the brand, was genuinely for sale. Chief executive Anubha Sahasrabuddhe said: "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," adding the company would "continue to work closely with the City of Launceston, the Tasmanian government and other stakeholders on the future of the brewery site."
The Boag's Brewhouse taproom and museum will remain open despite the closure. Dudman objected to Lion's shifting messaging: "I don't appreciate being called a liar." Lion later clarified: "Our position is, if a buyer offered the market value price for the brewery and potentially the brand ahead of November we would in good faith consider this."
The UWU's petition against the closure has drawn roughly 3,000 signatures. Dudman has warned of wider effects: "This impacts local tourism, local hospitality and our broader northern economy," and "There's close to 40 workers that will be impacted at Boag's in Launceston should this decision go ahead."
Lion maintains the closure is commercial, citing the brewery "operating at about a fifth of its capacity" amid market decline, which "combined with significant cost inflation, means the brewery is no longer viable."
Jonathan Jackson, 2nd July 2026
