Boag's shrinks Launceston beer production, 15 jobs in jeopardy

As many as 15 jobs could also be on the line should the proposed changes go ahead at the William Street brewery, which dates back to 1881.

Lion Australia's managing director James Brindley said a variety of factors, including the rising cost of living, meant times were tough for breweries of all sizes.

"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," he said.

"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."

The decision comes eight years after Lion cut one third of the Boag's workforce by relocating Tasmanian production of non-Boag's brands interstate.

At the time, Mr Brindley said the decision would return the Launceston company to its traditional focus on Tasmanian beers.

Boag's staff were informed of the latest proposed changes early on Tuesday morning.

"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," Mr Brindley said.

"Importantly, all Boag's beers sold in Tasmania would continue to be made at the Boag's Brewery in Launceston."

Lion Australia said it was "actively exploring" strategies to keep affected employees within the company.

Those who are not redeployed will receive redundancy packages and outplacement assistance.

Labor MP Michelle O'Byrne said the decision was a "terrible result" for the economy and workers, and jeopardised the strength of the beer's Tasmanian brand.

"People drinking Boag's expect the product to be Tasmanian made and produced. It is Tasmania's beer of choice and linked with our Tasmanian brand," she said.

"Based on this decision, if you are drinking Boag's on the mainland, you will soon be drinking mainland-made beer.

"It is important that Boags remains truly Tasmanian, and the government needs to provide assurances that the long-term future of the brewery is secure."

The state government provided $1 million to Boag's in early 2023 to help prevent the closure of the brewery's visitor centre, saving 12 jobs in the process.

Deputy Premier Michael Ferguson didn't confirm whether the government would step in again, but said the government would continue to work with the company moving forward.

"We're very disappointed to see any closure of jobs," he said.

"But the positive in all of this is that the company has been clear that this is about long-term certainty of the plant remaining a feature of our economy.

"I can't help but notice in the statement that Boag's specifically drew attention to the cost of their freight across Bass Strait - I think there's clearly a role here for the Australian government with its freight equalisation scheme."

Lion said it would soon reveal plans for its impending upgrade of the Boag's Visitor Centre, and that free tours for Tasmanians would continue until at least February 2025.

Visitor numbers have risen 19 per cent in the past year, during which time 1700 Tasmanians have taken advantage of a free tour.