E-Malt.com News article: Australia: Foster’s to take measures to stem Victoria Bitter’s shrinking market share

Foster’s is to launch a major brand advertising campaign for Australia’s leading beer, Victoria Bitter, in June, The Age posted on March, 11.

The beer’s market share is shrinking, but VB group marketing manager Paul Donaldson dismissed talk of a brand relaunch.

"There's a whole lot of stuff happening before June. It's not a relaunch or a fundamental change."

Foster's has announced a partnership with the Returned and Services League Australia (RSL) and Legacy to launch a fund-raising appeal around Anzac Day.

“Over the past year, Foster's has "looked at every part of the brand - everything from advertising to packaging and pricing, the whole bit", Mr Donaldson said.”We could have made 10 TV spots by now, but we want to do it right and at the right time."

The announcement comes as VB, which accounts for one in four beers drunk in Australia, continues to bleed market share, dropping from an 18.6 per cent share of the packaged beer market in the year to end of January 2008, to 16.5 per cent in the same period this year, according to figures from the Nielsen Company.

Earlier this year, Foster's CEO, Ian Johnston, told investors that VB remained a "challenge". "I'm encouraged that we've continued to slow the decline of VB and brand loyalty remains strong amongst consumers and we have some great programs planned for 2009." A Foster's spokesman laid the blame for the decline at the proliferation of premium beer and Australians' growing repertoire of alcoholic beverages. "Where in the '80s, a bloke would drink VB at a barbecue, at home or a wedding, in the past 10 years there has been a proliferation of premium brands and a diversification of the type of alcohol people are drinking," he said.



11 March, 2009