Local brewers question Tasmanian Government’s $1 million investment in James Boag’s Visitor Centre

The Tasmanian Government’s promise of a $1 million support package has seen Lion, the Japanese-controlled multinational and owner of James Boag - reverse its decision to close the James Boag’s Visitor Centre in Launceston.

While the facility remaining open appears popular in the state, local brewers have questioned why the state government has invested in a single foreign-owned brewery in preference to the region’s industry.

Lion announced on 19th January 2023, the closure of the tourist facility, citing COVID-19 impacts, rising costs and “overall decline” in beer consumption.

Lion, is the Japanese-owned drinks giant behind XXXX, Furphy, Iron Jack, James Boag, Tooheys, Hanh, Foster’s and James Squire and has also purchased a 100% stake in Fermentum Group, the parent company of Byron Bay’s Stone & Wood Brewing Co.

Prior to the announcement of support from the Tasmanian Government, Launceston Mayor Danny Gibson expressed his disappointment at news the city’s popular Boag's visitor centre and brewery tours would be shut down from 31st January.

Mayor Gibson said the news was "a significant blow" for Launceston’s visitor economy adding "The Boag's visitor centre and brewery tours are consistently ranked extremely highly by visitors to Launceston through feedback to the Launceston Visitor Information Centre and through a range of tourism review websites.

"In point of fact, the James Boag Brewery Experience is ranked by Tripadvisor visitors among Launceston’s top three most popular activities, alongside visits to iconic Launceston destinations like the Cataract Gorge and City Park.

"Boag's has been associated with Launceston for more than 160 years and the City of Launceston has an excellent working relationship with local management on the ground at the brewery.

"However, the decision by Lion's national office to effectively close the brewery to tourists is a significant blow for the city.

"Especially at a time when Launceston is seeking to leverage the opportunities that will flow from being designated a UNESCO Creative City of Gastronomy.”

Now, the James Boag’s Brewery Tours and Visitor Centre will continue to be enjoyed by locals and visitors for the foreseeable future as the State Government announces it has reached an in-principle agreement with Lion to keep the centre open.

Tasmanian Premier Jeremy Rockliff said that the in-principle agreement for $1 million in funding reached between Lion and the State Government secures jobs and will expand and enhance the tourist attraction to be bigger and better than ever.

Premier Rockliff noted “The Boag’s Brewery Visitor Centre is not only a local cultural icon but a vital part of the local northern economy attracting thousands of visitors a year.

“Importantly, the tour and centre directly employs 12 local staff and supports some 120 in suppliers in its operations.

“The unique experience it offers has been a significant drawcard for Launceston for decades, with the benefits flowing to other businesses in the region and across the State.

“That’s why it’s so important that not only does the Visitor Centre remain open, but that we work with Lion to make the visitor centre experience and attract more locals and tourists. The funding will also support a targeted marketing strategy to promote the tour experience nationally.

“This investment reinforces the commitment of both Lion and our Government to ensuring this important part of Tasmanian history and community continues now and into the future.”

“I look forward to continuing to work in partnership with Lion and James Boags’ Brewery to make one of Launceston’s most loved tourist attractions better than ever.”

Under the deal Lion will offer anyone with a current Tasmanian Driver’s License free brewery tours for the next 12 months.

James Boag’s Brewery Director, Nathan Calman, said that the outcome is a win-win for the Launceston Community.

“The proposal to close the visitor centre and tours were not put forward lightly and the response was an outpouring of immense passion for the continuation of our brewery tours and visitor centre experience. It reminded us of just how integral Boag’s is to Launceston,” Calman said.

“We will now work with our Boag’s Visitor Centre team, who will all retain their roles, to consider how we can use this funding to enhance the Boag’s brewery tour experience and promote tourism to Launceston for the benefit of the region.”

While the facility remaining open appears popular in the state, local brewers have questioned why the state government has invested in a single foreign-owned brewery in preference to the region’s industry.

According to Australian Brews News, Sam Reid who is a founder of Du Cane Brewing, which recently opened its $2.8 million brewery and dining hall employing 35 staff, described the decision as “bewildering”.

“It’s a good thing, I guess, but I think it’s bewildering – and they should give us $1 million to establish a Northern Tasmania brewing trail as well.”

In 2015 the Tasmanian Government announced a grant of $250,000 to develop a Tasmanian Beer Trail website. That site, which appears to not have been updated since 2018 currently lists 19 of the approximately 32 Tasmanian breweries. Its brewery map is currently broken.

Reid told Australian Brews News that an investment in a beer trail would spread the benefits across the 14 breweries in the region.

“That million dollars, or an equivalent amount, could do wonders for the northern Tasmanian visitor economy and small breweries.”

Reid also questioned a million-dollar investment in a multi-billion dollar company.

“With a $1.8 billion turnover in Australia what’s $1 million going to do?”

Corporate tax transparency records show that Lion generated revenue of $3.2 billion in 2019-2020, declining to $2.83 billion in 2020-2021.

“Also, why would you actually close a visitor centre that actually helps build your brand in the first place?” Reid asked.

“Like it’s just also bewildering for me because the reason we got a brewery and a venue together is so we hope to build the brand by having the things co-located so people can visit.

Australian Brews News also reports that Independent Brewers Association Chief Executive Kylie Lethbridge said she was supportive of any measures that support the brewing industry, but hoped more was to come.

Lethbridge notes “It is understandable that the Tasmanian government would want to ensure the ongoing viability of the visitor centre from the perspective of local jobs, and I imagine preserving a longstanding icon.

“Many businesses continue to face a reduction in income as a result of the pandemic so I imagine the next challenge will be to see that this injection of cash ensures the ongoing viability of the visitor centre.

“Any support that is provided to encourage beer tourism is a positive step and we hope that this is just the start of funding that will help develop new and innovative beer tourism experiences. Especially given there are now more than 20 independent, Australian own breweries in Tasmania that are more than worthy of the same consideration. “

Australian Brews News highlight that while Lion attributed the closure to business headwinds, the company has significantly under-invested in the brand over an extended period and note “Its lack of social media presence suggests the brand has not been a priority for the company, with only five posts shared across Facebook in 2021 and 2022 combined and three posts in three years on its Instagram account.”

Image. Credit: Tasmanian Premier Jeremy Rockliff Facebook