E-Malt.com News article: UK: InBev upset at decision of Young's Pub Company to delist Stella Artois

Inbev has issued a furious response to a major pub company’s decision to delist its flagship brand Stella Artois, according to The Publican, January 24.

Young’s, which operates more than 200 leased, tenanted and managed pubs in London and the South East, announced last week it was to replace Stella with a number of other lager brands, including Heineken, Amstel and Pilsner Urquell.

The move is described as part of a drive to bring more premium products into the estate.

The decision is a fall from grace for Stella, which despite still being the number one premium lager brand in the on-trade, is suffering heavy year-on-year declines in volume.

Some have argued that the brand’s premium status has been undermined by supermarket pricing.

And it appears Young’s move has upset InBev, which issued this statement in response: “Young’s is trying to generate some publicity for itself on the back of commercial negotiations which didn’t go its way. Millions of consumers and thousands of customers would disagree with Young’s view of the brand.

“We are still three times bigger than our nearest competitor, and a mark of a premium product is the number of people that are willing to pay more for that brand.

“In Stella Artois’ case that’s risen to more than 34 per cent of people, a rise of more than 10 per cent in one year! And we also have the highest number of upmarket drinkers of any beer brand. We also had a good Christmas performance. For example, we experienced growth in the take-home market when others are in decline.

“I think Young’s will regret its decision in the long run because no other beer brand is investing so much money to make sure that Stella Artois remains the number one premium choice for consumers.”

The brewer also suggested that the delisting be kept in perspective. The brand was stocked in 120 pubs in the Young’s estate, a loss which an InBev spokesperson described as “very, very insignificant” in the overall scheme of things.

“We can often win that number of new customers in less than a day,” the spokesperson added.

Other brands introduced into the Young’s estate as a result of the shake-up are Addlestone’s cloudy cider and premium soft drinks brands Feelgood Drinks and Fentimans.

Young’s retail director Patrick Dardis said the premiumisation drive was an effort to keep the company ahead of the game in a changing market.

“The new drinks range will ensure we meet the needs of customers who are visiting Young’s pubs for the quality of the service, the offering and the overall experience,” he said.

“Young’s has always prided itself on the quality and individuality of its pubs, as well as its serious approach to food.”

Young’s did not wish to comment on InBev’s response.


25 January, 2008