Tasmanian beer manufacturer James Boag will cease production in the state by November as it looks to move onto the mainland.In a blow for 42 local workers, James Boag’s parent company Lion Australia said it was shifting production from Launceston to mainland Australia in a bid to save on high shipping costs.Production out of Tasmania will cease from November 2026 after 145 years of making the popular brand in the state. Tasmanian Premier Jeremy Rockliff labelled the announcement as “extremely disappointing”.“Our immediate priority is the wellbeing of the workforce,” Mr Rockliff said.“We will engage closely with Lion, the union, workers and the hospitality industry to support those impacted.”In a statement, Lion chief executive and managing director Anubha Sahasrabuddhe acknowledged it was difficult news for employees and the broader Launceston community. “This proposal is no reflection on the incredible capability, passion and commitment of our brewery team members, and the many more who have come before them, who have worked hard to operate the brewery as efficiently as possible despite decreasing volumes,” she said.But the company said 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. This combined with significant cost inflation means the brewery is no longer viable.The brewery opened in 1881, with Scotland’s James Boag and his son taking over two years later.It remained in Tasmania for the last 145 years and marketed itself as “from the pure waters of Tasmania”.In 2024, James Boag shifted some of its production from the brewery to mainland Australia, as it looked to reduce the $1.5m it spent per year on shipping. Lion says it will continue to brew its James Boag beer and Tasmania remains important to the company. As part of the move to the mainland, Lions has announced a $500,000 reskilling fund, aimed at helping the 42 workers impacted move into new employment areas. Lions also announced it would establish a $500,000 community fund over five years to honour partnerships and grants in Launceston and Northern Tasmania as well as repay $1m to the Tasmanian government contributed to the redevelopment of the Boages Brewhouse. Tasmanian government said it welcomed Lion’s commitment to honouring employee benefits and delivering a $500,000 reskilling fund for workers.