E-Malt.com News article: Australia & Mexico: Foster’s Group keeps Corona beer

Foster’s Group has inked a new multi-year extension of its highly valuable contract to sell Corona beer in Australia, cementing its 22-year relationship with Mexican brewing giant Grupo Modelo, The Sydney Morning Herald reported on February, 5.

A small delegation of Grupo Modelo executives arrived in Australia on February, 5 to meet with Foster’s management and sign the new licensing deal. Jose Pares, Grupo Modelo's global vice president of sales and marketing, headed the executives in their meeting with Foster’s Carlton & United Breweries team.

Foster's licence to sell Corona in Australia is one of its most important foreign relationships, with the brand spearheading the local beer and wine company's international beer offering.

Foster's is understood to generate more than A$65 million in earnings before interest tax, depreciation and amortisation (EBITDA) a year from the Corona contract.

While in Australia Mr Pares will also review the sales of Corona in Australia for 2009 as well as look over CUB’s marketing and advertising plans for the brand in the coming year.

The licence extension comes as Foster's faces deteriorating returns from its struggling wine division due to the global financial crisis and a wine glut that has forced down prices and squeezed margins.

It is believed that Foster's Corona licence was set to expire at the end of 2010 while its contract to sell Stella in Australia is also drawing to a close.

Corona Extra has grown to become Australia's No. 1 premium imported beer and the seventh-largest beer brand in value in the Australian market. The beer has a 38 per cent value share and 35 per cent volume share of the premium imported packaged beer segment.

Corona is more than double the size of its nearest competitor and enjoyed growth at 13 per cent in value terms and 16 per cent in volume terms in the past year.



05 February, 2010