Coopers boss says Foster's revamp will cheer all beer firms
Coopers, the largest locally owned brewer, recorded beer sales of 69.7 million litres in the 2013 financial year, bucking the trend for beer drinkers to abandon their schooners for wine and alcopops.
Coopers managing director Tim Cooper said SABMiller's revamp of Foster's flagship VB beer and a relaunch this month of Crown Lager would bring excitement back into the market to the benefit of all.
"From the point of the view of the overall market it's good, because we are also competing against wine and RTDs [ready to drink]. Even though they could take some of our market at the same time it's good for the overall beer industry to grow the segment," Dr Cooper said.
SABMiller has quickly gone to work to resuscitate Foster's flagging sales since it bought the brewer in 2011 for $12.3 billion. It lifted the alcohol content of VB back to its historic level after a reduction drew the anger of fans, and freshened up other brands.
"I tasted the new VB, which I think is certainly an improvement," Dr Cooper said.
"SABMiller are very passionate about brewing and the wholesomeness of their brewed product globally, so I think they are taking a long term view to try and increase the beer credentials of their flagship products."
He said his brewery would benefit from a restoration of the beer market in Australia. Volumes had declined as much as 4 per cent since 2009-10 as part as a prolonged slide.
"We are in our fourth year of market decline now," he said.
"The decline is slowing but we are still seeing a decline of 2 per cent across Australia. We need to appeal to the younger drinker who might otherwise be drinking RTDs or wine."
The takeover of Foster's has also benefited Coopers directly. A number of global labels have quit the Foster's camp to seek new local partners. T family-owned Coopers won a distribution deal with Carlsberg. That deal, along with new licence arrangements with brands such as Sapporo and Kronenbourg 1664, helped Coopers' 8.3 per cent rise in beer volume sales for 2012-13. Its partnership with Japanese brewer Sapporo generated a near 100 per cent increase in sales in Australia last financial year to 1.2 million litres.
Dr Cooper said despite tough conditions, Coopers' growth had averaged 9.8 per cent for 20 years.
Frequently Asked Questions about this Article…
Coopers praised SABMiller's plans to revive Foster's beer portfolio, saying renewed marketing and product tweaks (like restoring VB's alcohol level) could bring excitement back to the category. For investors, a stronger Foster's could boost overall beer demand in Australia, helping all domestic brewers by expanding the segment versus wine and RTDs.
Coopers recorded beer sales of 69.7 million litres in the 2013 financial year and reported an 8.3% rise in beer volume sales for 2012–13. The company also said its long‑term growth has averaged about 9.8% over 20 years—useful metrics for investors tracking revenue and volume trends.
After acquiring Foster's in 2011, SABMiller lifted VB's alcohol content back to its historic level and freshened up other brands, and the article notes a relaunch of Crown Lager. These product moves aim to win back drinkers and can be a catalyst for improving category performance, a point investors should consider when assessing brand-driven sales recovery.
The beer market had been shrinking for four successive years, with volumes declining as much as 4% since 2009–10. The decline was slowing, with about a 2% fall across Australia at the time of the article. Investors should watch competition from wine and ready‑to‑drink (RTD) beverages and efforts to attract younger drinkers.
Yes. Several global labels left the Foster's network after the takeover and sought new local partners. Coopers secured a distribution deal with Carlsberg and new licence arrangements with brands such as Sapporo and Kronenbourg 1664. The Sapporo partnership nearly doubled Coopers' sales in Australia to about 1.2 million litres.
Dr. Tim Cooper said beer makers are competing not only with each other but also with wine and RTDs. He noted the need to appeal to younger drinkers who might otherwise choose RTDs or wine—an important strategic focus for brewers and investors monitoring market share shifts.
SABMiller moved quickly after buying Foster's in 2011 (the takeover was for $12.3 billion) to resuscitate sales—adjusting VB's alcohol content and refreshing other brands. For investors, this signals that new ownership may pursue active, short‑ and long‑term brand strategies to restore growth.
Investors should watch volume trends (whether the multi‑year decline reverses), brand relaunches and product changes (like VB and Crown Lager), distribution and licensing deals (for example, Coopers' Carlsberg and Sapporo arrangements), and efforts to win younger drinkers. These indicators were highlighted in the article as drivers of a potential market restoration.
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