Lion, the Australian brewing subsidiary of Japanese beverage giant Kirin, has announced the permanent cessation of brewing operations at its historic James Boag facility in Launceston, Tasmania. The closure, scheduled for November 2026, will result in the loss of 42 technical jobs. According to an official statement by Lion CEO Anubha Sahasrabuddhe, the plant has been running at approximately 20% of its potential capacity for several years, rendering continued operations financially unsustainable.
The decision marks the final stage of a prolonged capacity rationalization for the brand. In 2024, Lion shifted the production of all James Boag volumes destined for mainland Australia to its larger, centralized facilities across the country. Consequently, the Launceston brewery was reduced to producing solely for the localized Tasmanian market, a volume that proved insufficient to maintain the high overhead of the large-scale regional plant. Moving forward, all remaining James Boag production will be fully absorbed into Lion's mainland supply network.
The exit of Lion's commercial brewing operations from northern Tasmania leaves the island's commercial brewing heritage anchored in the south by its fierce historic rival, Cascade Brewery. Located in Hobart, Cascade remains fully operational as Australia's oldest operating brewery, ensuring the state retains large-scale operational brewing infrastructure. In 2018, the facility received a major AUD 10.3 million (USD 8 million) upgrade under Carlton & United Breweries (CUB) to expand its craft and small-batch capabilities (inside.beer, 26 February 2018). CUB, and consequently Cascade, was later acquired by Asahi Holdings following the divestment of assets by AB InBev (inside.beer, 1.4.2020)
Despite halting industrial production in Launceston, Lion intends to maintain a brand presence in the north. The company will continue to operate Boag's Brewhouse, the on-site visitor center, which underwent an AUD 2.4 million (USD 1.6 million) renovation in late 2025. Following the cessation of brewing, the company also committed to repaying an AUD 1 million (USD 670,000) grant previously provided by the Tasmanian State Government, which was initially awarded to help retain manufacturing in the region.
The closure aligns with Lion's broader strategy of aggressive cost control and physical footprint reduction amid a stagnating domestic beer market. Over the past two years, the Kirin-owned entity has systematically unwound several of its smaller-scale hospitality and brewing operations. This includes opting out of the lease on the Fixation incubator site in Collingwood in 2024, closing the Stone & Wood brewpub in Fortitude Valley in 2025, and offloading the Tiny Mountain brand in Townsville. As global beer volumes face continued downward pressure, regional manufacturing hubs are increasingly being sacrificed in favor of hyper-efficient, consolidated production capabilities.
