'Terribly sad day': Beer experts say Boag's closure points to growing cost of brewing

Production of Boag's beer in Launceston will stop in November. (ABC News: Kate Nickels)

Beer industry stakeholders have been shocked by the announcement that James Boag beer will no longer be produced in Launceston.

Some say the closure points to significant issues in the industry, which are particularly hard on independent breweries.

The 145-year-old brewery in Launceston is due to cease production in November this year.

Australian beer industry stakeholders say the closure of an iconic Tasmanian brewery has left them shocked, some pointing to the growing "unaffordable" cost of brewing beer in Australia.

Yesterday, brewer James Boag announced it would stop production at its Launceston brewery in November.

The 145-year-old brewery has branded its products as being "from the pure waters of Tasmania".

Now, James Boag's parent company, Lion Australia, will move production interstate.

Boag's brewery has been a part of Launceston for 145 years. (ABC News: Emily Smith)

Local Launceston brewery owner Sam Reid said he was "shocked and taken aback" by the announcement, considering the recent state funding injected to the facility.

"We feel for the staff who have lost their roles there, [it's] terrible for Launceston, terrible for the staff and their families," Mr Reid said.

"I thought they were going to be staying focused and committed to Launceston for a while.

"It's not the cost of making beer in Launceston, it's the reality that most of their beer is made at their huge brewery in Lidcombe in Sydney and just the efficiencies they're getting.

Sam Reid says he hopes the $1 million Boag's will pay back to the state will be re-invested into local breweries. (Supplied)

In 2023, the brewery received $1 million in funding to keep its visitor centre open.

At the time, Premier Jeremy Rockliff said the tours promoted other local businesses and were a tourist drawcard.

Mr Reid, who operates the Du Cane Brewery, said he hoped the $1 million in state funding would be redistributed to other local breweries.

"The new Spirit [of Tasmania ferries] are coming into operation this year, we've got a host of small Tasmanian-owned and made breweries in the north of the state," he said.

"Some of that million dollars could hopefully be used to continue to invest in the visitor economy."

Sabrina Kunz says the excise tax regime is making beer "unaffordable". (ABC News: James Carmody)

Independent Brewers Association chief executive Sabrina Kunz said the closure was indicative of the rising cost of brewing beer in Australia.

"For a company the size of Lion, [Boag's] wo