Beerlines

Insights on beer marketing & PR by a beer-war vet

Archive for the 'Matt Kirkegaard' Category

02 December
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CUB weakens Foster’s Lager. Why?

I was attracted to the bright blue pallet load of Foster’s Lager at Dan Murphy’s.

But what caught my attention was the alcohol content of Foster’s Lager now at 4%.

[UPDATE/CORRECTION 7 December: IT’S CLASSIC!! A case of reading the fine print! This brew is called Foster’s Classic and apparently is being sold exclusively through Dan Murphy’s; the comments at this web site about how ‘Classic’ it is are worth a read. Thanks to beer writer Matt Kirkegaard for the heads-up.]

fosters 4 percent

Previously, as you can see from the pic below from Carlton & United Breweries‘ website, Foster’s Lager was 4.9%. (Perhaps CUB should update its website.)

That’s a whopping 18% reduction!

fosters

Brand histories ignored
Why is CUB, or rather parent company SAB-Miller, doing this?

Okay.. Foster’s glory days are long over. Nonetheless it’s fair to say it remains an iconic beer brand recognised globally as Australian.

So has CUB learned nothing from the consumer backlash when they did this to VB? Remember CUB’s letter of apology in the press when they ‘fixed’ it?

Have they not checked their history and wondered at the demise of other strong CUB brands like Abbots Lager, Reschs Pilsener and Brisbane Bitter when alcohol was sneakily reduced?

CUB has recently cut the alcohol content of Cascade Premium too.

Perhaps Foster’s Lager is set to be yet another discount brand fighting on price. Call me nostalgic but that would be a sad end to this famous brand.

Cost cutting your way to growth
There is only one reason this is happening of course. It’s to reduce the Federal Excise the brewery has to pay which is based on alcohol content. Okay .. it’s the job of business to reduce costs. Consumers understand that.

What they don’t understand is a decision to ignore them and to reduce the essential ingredient and, invariably, the taste of a brand they prefer – or used to prefer.

SAB-Miller’s global webpage says it has “A commitment to growth.” Perhaps they’ve not heard the marketing truism which states “you can’t cost-cut your way to growth.”

However I suspect those making such decisions at CUB are not listening: certainly not to consumers. Pity.cheers

 

13 July
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Crown chases lost gold

So Crown Lager – or rather CUB’s Crown brand – has launched another line extension. This time as Crown Golden Ale.

The launch was well covered by the Herald Sun plus a solid review by Matt K at Australian Brews News (he has some unresolved issues with the Crown brand).

After the hefty consumer backlash to Crown Lager’s new taste (aka reformulation) as well as the failure of Crown Pilsner and Crown Gold, you’d think CUB would be treating Crown with more respect. Being gentle – softly softly – with such a key brand.

golden-ale-bottle-only

Crown Golden Ale in its black and gold livery

But no..

So .. this latest brand refurbishment for Crown prompts me to ask:

  • Is Crown Golden Ale filling an identified demand/niche or just line extending as CUB tends to do reactively when a brand is under serious pressure e.g. VB Original Ale?

Trend watching: OTL (other than lager)
Answer? Maybe it’s the strength of CUB rival James Squire’s Golden Ale.

Or could it be that CUB has spotted the trend in the UK where ‘golden ales’ are chalking up surprising growth in recent years?

The Guardian quotes Tesco ale buyer Chiara Nesbitt who notes: “Over the last five years ale has made a resounding revival as a flavoursome beer that is now appealing to a younger generation of beer drinkers. Golden ale with its light and refreshing taste is playing a major role in this revival as it is the beer lager drinkers first generally try if they want to switch to ale.” (my emphasis)

In support of this view, CAMRA (Campaign for Real Ale in the United Kingdom) defines golden ales as a “.. new style of pale, well-hopped and quenching beer developed in the 1980s as independent brewers attempted to win younger drinkers from heavily-promoted lager brands.” (my emphasis)

Sneaking its way into craft?
Many beer experts will claim golden ale as being a style which has its origins in, and is now ‘owned’ by, the craft beer segment. I tend to agree.

So is this just CUB nudging the style boundaries and giving a hat-tip to a popular craft beer?

I think so, but does it matter? Read more…