Boag’s Brewery Launceston to cut jobs, move production of some beer interstate

The historical Tasmanian brewery has announced major changes including shifting production of some of its beer interstate. Here’s why.

Boag's Brewery in Launceston

Launceston’s brewer Boag’s will cut 15 positions, and move to a one-shift operation, as it moves some of its production to the mainland.

Parent company, Lion, this morning informed Boag’s staff that changing consumer preferences, cost of living pressures, and increasing in government excises were the reasons behind its decision.

Lion Australia Managing Director, James Brindley, said the proposed changes had been made to ensure the long-term sustainability of its Tasmanian operations.

DAILY TELEGRAPH - Pictured is Lion Nathan MD James Brindley outside the Grand Hotel in Sydney today, holding a schooner of Furphy to announce the Vax initiative. Picture: Tim Hunter.

“It has been a tough time for large and small brewers with overall beer sales and production volumes in decline due to changing consumer preferences, cost of living pressures and continual increases in Federal Government excise,” Mr Brindley said.

“We have not been immune from these, as well as other challenges in Tasmania – for example Lion currently spends more than $1.5 million a year on transporting beer back to the mainland.

“Given this, we have made the difficult decision to move production of some beer destined for the mainland to our breweries there and are proposing to transition to a one-shift operation.

“We have today informed our Boag’s team of these proposed changes. While in the long-term interests of our operations – this proposed decision will sadly see approximately 15 roles impacted, with a number of our team expected to leave Boag’s should we transition to a one-shift operation.

“Importantly, all Boag’s beers sold in Tasmania would continue to be made at the Boag’s Brewery in Launceston.”

Lion has also today provided an update on the upgrade of the James Boag’s Visitor Centre and Brewery Experience – with detailed designs close to being finalised for public release.

Lion said while it was seeking redeployment opportunities within the company for affected Boag’s staff, redundancy packages and outplacement assistance on the table.