Lion to close Adelaide’s historic West End brewery

Australia | Lion announced plans to close Adelaide’s 160-year-old West End Brewery in June 2021, with the loss of up to 100 production jobs. The Kirin-owned brewer described the closure as a “sad day for the West End team, Lion and South Australia”.

“West End has been operating well below its full production capacity for some time now and unfortunately this is no longer viable,” the statement said. The 1.2 million hl brewery (it produced 2 million hl beer in the 1980s) has been under pressure for some years, with shifts being reduced in 2018, which saw the loss of 36 full-time jobs.

At the time, the company said that West End would stay open, not least since in 2013 it received a significant investment from its parent for a cider-making facility at the site.

Lion, which ranks second behind Asahi-owned Carlton & United Breweries, noted that the Australian beer market has been in long-term decline for the past decade, as Australian drinkers choose other beverages such as wine over beer. Data show that beer volumes have declined 20 percent over this period.

“Our input costs have continued to rise against this backdrop of declining volume, and a further drop in draught beer sales as a result of the pandemic,” the statement said.

Coopers could benefit

Up to 100 production jobs will be lost. Around a third of employees will continue in sales and marketing roles, while those made redundant will have access to outplacement support and a West End Re-Skilling Fund of up to AUD 1 million (USD 710,000).

The decision will not go down well with local consumers. The 1.8 million South Australians are fiercely proud of their locally manufactured food and beverages. Already, in 2018, Coca-Cola Amatil closed its Adelaide operation and shifted production to larger factories in other states.

Now it looks as if Coopers, Adelaide’s only remaining traditional brewery, which was founded in 1862, could benefit from West End’s closure.