Australia: Foster’s to transfer to Lion production and distribution rights to Guinness and Kilkenny

Beer brewer Lion, a unit of Japan's Kirin Holdings Co. Ltd., said on June, 13 it will start making Diageo PLC's Guinness and Kilkenny in Australia from November 1, snatching them from SABMiller PLC-owned Foster's, The Wall Street Journal reports.

"These brands strengthen our leading international premium portfolio, with Lion now offering six of the top ten beers in this fast growing segment," James Brindley, managing director of Lion Beer, Spirits and Wine in Australia, said in a statement.

Lion said it would manage the Australian brewing of Guinness Draught, Kilkenny Draught and Extra Stout, as well as the distribution, sales and marketing for both brands in all existing formats, in line with Diageo's global brand activity.

The company said Kirin is Diageo's distribution partner in Japan, and Lion currently manufactures and distributes Guinness and Kilkenny in New Zealand through a pre-existing relationship with Diageo.

Lion said Foster's, which was taken over by SABMiller last year in 9.9 billion Australian dollar (US$9.87 billion) deal, would continue making Guinness and Kilkenny in Australia until October 31.

13 June, 2012