United Kingdom: AB InBev to withdraw Castlemaine XXXX from the challenging British market

AB InBev, the Belgium-based world’s largest brewer, has withdrawn Castlemaine XXXX from the UK market, the Publican reported on June, 4.

The brewer, which produces the beer on licence, has agreed with brand owner Lion Nathan to retire XXXX from the UK at the conclusion of their licensing agreement on June 30, 2009.

AB InBev had increasingly lost focus on the standard lager, turning its marketing efforts instead to Stella Artois, Beck’s and their brand extensions Stella 4% and Beck’s Vier.

A statement said: “The mainstream lager market in the UK is subject to challenging market conditions. Also, in an increasingly globalised world, Lion Nathan has taken the view that maintaining varied brand positioning in different markets is not in the best interests of the XXXX brand. Consequently, Lion Nathan has taken the view that it is not in the best long term interests of XXXX to continue marketing the brand in the UK.

“InBev UK always strives to be innovative in the mainstream lager category, which has led to many of our new products and developments. We track these new products in real commercial terms and against consumer demand, and we will make changes if necessary in order to deliver the best for both our consumers and our customers’ business.

“InBev UK is informing stockists of the decision and will continue to work with them to ensure that the InBev range of brands including Stella Artois, Beck’s and Budweiser reflects their consumer profile and commercial needs.”

05 June, 2009