Lion will end beer production at Boag's 145-year-old Launceston brewery in November

ABC News reported on 2 June 2026 that Boag's would stop producing beer at its Launceston brewery in November, with parent company Lion Australia completing a move of Boag's production entirely out of Tasmania. The 145-year-old brewery had branded its beer as being 'from the pure waters of Tasmania'. Industry figures said they were shocked, and some pointed to the growing 'unaffordable' cost of brewing in Australia, which they said is especially hard on independents.

A local brewery owner, Sam Reid, said he was 'shocked and taken aback' given the recent state funding to the site, and that the closure was 'terrible for Launceston' and for staff. In 2023 the brewery received A$1M in state funding to keep its visitor centre open; the company said that money would now be paid back. Reid said the decision was not about the cost of making beer in Launceston but that most of Boag's beer is made at a huge brewery in Lidcombe, Sydney, and that the efficiencies there were 'probably starting to outweigh the benefits of making beer here'.

Drinkers also reacted, with one saying the decision was 'disgusting' and another that the company leaving Tasmania was 'not good'. Another local operator said the excise tax regime was making beer unaffordable.

A 145-year-old brewery's production ends; A$1M of 2023 state funding for its visitor centre is to be repaid; staff lose roles.

Most Boag's beer was already made at Lion's large Lidcombe brewery in Sydney, so a local brewer said the efficiencies there outweighed the benefit of brewing in Launceston.

Stakeholders cited the high cost of brewing in Australia, including excise tax, as especially hard on independent brewers.

The company chose to complete its move of production out of Tasmania even though the state had funded its visitor centre in 2023.

A heritage brand sold on its local origin loses its story when its owner consolidates production; subsidies and goodwill are repaid.

The company said the A$1M of state funding would be paid back, and a local brewer hoped it would be reinvested in other Tasmanian breweries and the visitor economy. Production at Launceston is due to stop in November 2026. The reasons above come from industry commentators; the article gave no fuller explanation from Lion.