The parent company of Boags Beer will cut 13 local jobs and move the production of its iconic Tasmanian beverage to the mainland. Boags Premium Beer will no longer be brewed in Launceston, citing increased taxes, rising transportation costs, and changing consumer tastes as reasons for the shift. Chris Rowbottom reports.
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00:00Goes in there, comes out different.
00:04It's about as Tasmanian as Tasmanian gets.
00:07Because this water just makes things better.
00:11But soon, not all Bogues beer will be made with Tasmanian water.
00:16It's been brewed in Launceston for more than a century, but rising costs and evolving palates
00:22mean change is on the way.
00:23Well, I think it's really disappointing, given that it's an iconic product and brand to
00:29Launceston particularly.
00:31Production of Bogues premium beer is set to shift from Launceston to the mainland.
00:36Yes, I think it's terrible.
00:37It's not local.
00:38It's not local beer.
00:39No, no.
00:40It's just a name, another name.
00:43The move will result in the loss of jobs at the Launceston brewery.
00:48We feel like this is the best decision we can make to keep it going as a sustainable
00:55and outstanding brewery that it's always been.
00:58Unfortunately, 13 people's roles are impacted.
01:02Only beer sold in Tasmania will now be brewed in Tasmania.
01:06And despite a move across Bass Strait, the company insists its premium product won't
01:11lose its trademark Tassie taste.
01:14They'll still be brewed to the highest quality with the best quality ingredients.
01:19Post-pandemic, beer consumption has decreased as people turn to wine and pre-mixed beverages.
01:26A federal government rise in beer excise earlier this year and hefty transport costs also hitting
01:32brewers big and small.
01:35Beer is such a low margin game nowadays, even at the big volumes that a company like Bogues
01:41is dealing with, it does make a difference.
01:43So I do understand those cost pressures that exist.
01:47Lion Australia says it has no intention of making further cuts, while plans to upgrade
01:53and reopen the brewery's visitor centre are full steam ahead.