James Boag ends 145-year history as brewer ceases Tasmanian production

Boag's has been a feature in Tasmania for almost 150 years. (ABC News: Kate Nickels)

James Boag has announced it will stop producing beer in Tasmania at its iconic 145-year-old brewery later this year, affecting 42 local jobs.

The brewer said the decision came amid the "long-term decline in the national beer market" and high costs.

The brand will continue to be produced on the mainland at other breweries owned by parent company Lion Australia, and its Boag's Brewhouse in Launceston will remain open.

Renowned northern Tasmanian brewer James Boag has announced it will cease production in the state by November.

Parent company Lion Australia had shifted production to the mainland for Boag's products sold in those states, but kept brewing in Tasmania for local supply.

The company branded itself as "from the pure waters of Tasmania" but that history now comes to an end.

"Long-term decline in the national beer market has caused the brewery to run significantly under capacity for many years. It is currently operating at about a fifth of its capacity," the company said in a statement.

Boag's beers will still be available in Tasmania but they won't be brewed here. (ABC News: Kate Nickels)

Launceston Mayor Matthew Garwood said the brand's departure from the city after 145 years was a "real kick in the guts".

"The Boag's story is Launceston's story," he told ABC Mornings.

"It is very much aligned to Launceston and very much aligned to Tasmania."

Mr Garwood said he felt for the affected workers, describing Lion's decision as a "blow to the Launceston and Tasmanian economies".

The company says the redeveloped Boag's Brewhouse will remain open. (ABC News: Emily Smith)

Lion chief executive and managing director Anubha Sahasrabuddhe said consultations were now underway with the company's 42 Launceston employees.

"The James Boag's brand will continue to be brewed in other world-class breweries in Lion's network in line with stringent quality standards," Ms Sahasrabuddhe said.

She said the newly redeveloped Boag's Brewhouse in Launceston would continue to operate and mainland-brewed Boag's beer would be offered in Tasmania.

The brewer also announced it would repay a $1 million Tasmanian government loan given in 2023 to help keep the Launceston brewery visitor centre and tours open.

Amy Brumby, from the United Workers Union, told the ABC'S Tasmanian Country Hour the brewery's employees were blindsided by the decision.

"We've had no discussions with Boag's over the future of the brewery in Tasmania," she said.

She said workers were "absolutely devastated"