The multinational owner of Tasmania’s beloved James Boag’s brewery has no plans to sell the brand, despite claims from the United Workers’ Union (UWU).
The brewery’s parent company Lion Australia issued a statement this morning refuting the union’s clams that the brand and the brewery were for sale.
Confusion reigns, however, as a letter seen by the ABC from Lion to the UWU and dated June 25 indicated a willingness to sell both the brewery and the brand.
Lion announced it would end production of Boag’s beers in Tasmania. (ABC News: Kate Nickels)
And despite Lion saying a sale of the brand was not “our intention”, the ABC understands it would consider expressions of interest.
Lion bought the Launceston-based brewery for $325 million in 2007, but the company has confirmed it is proceeding with plans to shut the Tasmanian brewery doors on November 6, ending 145 years of local beer history.
Boag’s is currently brewed on the mainland, after production was moved there in past years, with the original Launceston brewery only continuing on to supply the local Tasmanian market.
The move to shut the brewery will end local production.
Union says Lion ‘agreed to sell’ Boag’s brand
In an early morning press release, the union said “Lion has agreed to sell the iconic Tasmanian brand Boag’s along with the brewery in Launceston rather than close the site and move production to the mainland”.
Organiser Ben Dudman said the union, which represents about 40 people whose jobs are at risk at the Launceston brewery, was calling on Tasmanian Premier Jeremy Rockliff and the government to help find a buyer.
The United Workers Union’s Ben Dudman wants state government help to secure a buyer for the Launceston operations. (ABC News: Kelsey Reid)
“The premier needs to use all his connections and influence to find a sale pathway,” Mr Dudman said, referencing similar efforts to find new owners for the King Island Dairy and the Liberty Bell Bay manganese smelter.
“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.“
When asked, Mr Rockliff did not commit to the union’s calls to help find a buyer for Boag’s.
However, he said he will be travelling to Japan to seek assurances from Lion Australia’s parent company Kirin.
“Our focus is on the workers and to ensure that we support them in the transition,” Mr Rockliff said.
“What I’ll be doing is going to the parent company in Japan to meet with them to ensure that in this transition the property and indeed the Tasmanian northern economy is supported.”
Lion Australia has made some commitments to investing in community funds and reskilling funds for workers affected by the brewery’s closure.
What the letter from Lion says
The union’s surety about Lion’s position is based on a letter from the company, seen by the ABC, which does leave the door open.
“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,” they wrote.
The letter stated the company was not intending to seek expressions of interest but would “consider any credible proposal to purchase the brewery or the Boag’s brand”.
In a subsequent statement, the company said it was not actively seeking buyers for the brand, but it confirmed the brewery site, not including the taproom, was on the table.
“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,”
Lion chief executive Anubha Sahasrabuddhe said.
“We will continue to work closely with the City of Launceston, the Tasmanian government and other stakeholders on the future of the brewery site.”
The company said the Boag’s Brewhouse, which is the publicly accessible taproom and beer history museum, will continue, but the brewery will close in November.
Boag’s is an important part of Launceston’s history. (Supplied: State Library and Archives Tasmania)
Mr Dudman said he did not appreciate what he saw as the company changing its stance.
“I don’t appreciate being called a liar,”
Mr Dudman said.
Despite the company’s statement, the ABC understands the wording of the letter is accurate, and that Lion would consider expressions of interest for the brand and the Brewhouse.
Union cites fears of economic decline if brewery closes
Announcing the closure in June, Lion chief executive Anubha Sahasrabuddhe said the company would retain the brand and the Launceston taproom, but end production on the island.
The company already brews Boag’s, along with many of its other beer brands, interstate, and had said that the beer brand will still be available in Tasmania in the future.
Two weeks ago, the UWU announced a campaign to encourage Lion Australia to sell the brand and the Launceston brewery, rather than shut it down.
It started a petition for support, which it says attracted 3,000 signatures.
At the time, Mr Dudman said the decision to close the brewery would have a broad effect on the Tasmanian economy.
“This impacts local tourism, local hospitality and our broader northern economy,” he said.
“There’s close to 40 workers that will be impacted at Boag’s in Launceston should this decision go ahead; it is a large employer in Launceston and the impacts flow further than just the brewery technicians.”
About 40 workers will be affected by the Tasmanian closure. (ABC News: Kelsey Reid)
But the company said its decision was also economic, calling the brewery unviable.
“The long-term decline in the national beer market has caused the brewery to operate significantly under capacity for many years — it is currently operating at about a fifth of its capacity.
“This, combined with significant cost inflation, means the brewery is no longer viable.”
