The rise of craft beers and increasing freight costs are being blamed for West End Brewery's plans to reduce shifts, which in the worst case scenario will lead to 36 full-time jobs being cut.

Key points: About 100 people work at the Thebarton West End site

About 100 people work at the Thebarton West End site Changing drinking habits and freight behind decision

Changing drinking habits and freight behind decision Company built a cider-making facility at the site in 2013

Brewery workers were told about parent company Lion's decision this morning.

It said more than 100 people were employed at the Thebarton site.

The company's regional sales director, Jason Baily, said drinkers changing tastes and a decision to brew closer to where it was being consumed, instead of freighting large volumes from the site interstate to reduce freight costs, had influenced today's announcement.

"There's a couple of key factors. I suppose increased competition is certainty one of them," he said.

"I'm sure everyone who has gone into a bottle shop lately has seen the extraordinary number of craft beers that are available — so there's increased competition.

"I think the way the beer market has changed is — it wasn't that long ago when consumers only had two or three beers in their repertoire that they drank, where they now tend to have a lot more.

"There's a lot more choice out there and people tend to share that around a bit more with what brands that they are purchasing."

Job losses also in Queensland

The XXXX Brewery at Milton in Brisbane also announced plans today to cut 25 full-time jobs, or a quarter of its workforce.

Lion external relations director Dan Holland said more people were turning away from traditional beers when they were choosing what to drink.

"They're now choosing from a broader range of beers — there's actually now 80 breweries in Queensland alone and more than 500 across Australia and all of these dynamics lead to a gradual decline in the mainstream beer market," Mr Holland said.

"They're also choosing wine and spirits more regularly and within beer their choosing from a broader range of brands — but that said XXXX is still the number one brand in the state but the long-term trends are the fact there is a decline."

The XXXX brewery on Milton Road in Brisbane. ( ABC News: Giulio Saggin, file photo )

Small breweries on the rise

The ABC reported last month, the nation has averaged one small brewery opening a week for the past two years.

Mr Baily said the West End site would continue brewing its "mainstream" beer which was still the biggest brand in the state.

Swan and Emu beer and XXXX are also bottled there, along with imported brands.

"We have been brewing quite a bit of volume of beer here… that's been going outside of South Australia," Mr Baily said.

"So we are proposing some changes to reduce the number of shifts that we operate at West End which will see us focus primarily on the brands that we sell in South Australia.

"So brands South Australians love, like West End Draught."

Mr Baily said the exact number of job losses was not yet known because a consultation process had only just begun and there might be opportunities for workers to go part-time or job share.

Lion said its preference would be to offer voluntary over compulsory redundancies in the first instance.

It said the West End site would continue to play an important role in its network of nine breweries, after significant investment in 2013 to build a cider-making facility.

Luke Saturno serves a range of craft beers at his Adelaide city pub. ( ABC News: Isabel Dayman )

People wanting to try something different

Gilbert Street Hotel owner Luke Saturno said he was not surprised to hear West End was struggling to keep up with competition from smaller breweries around the country.

"[Craft brewing] is massive — it's what's driven our business for the past four years," he said.

"Palates change and people are getting better knowledge of beer itself and its different styles.

"With that, people expect more from their beer… and they want to explore a bit more.

"We have to keep up with that demand."