VB beer regains top billing
The result was underpinned by a strong performance by Foster's flagship VB beer, which has regained its position as the nation's biggest-selling brew.
Trading results released by global brewing giant SABMiller show VB recorded sales growth for the second consecutive quarter since its re-launch in October.
SABMiller, which paid more than $12 billion for Foster's in 2011, said VB had shown growth after a decade-long decline in sales.
But the brewer continues to suffer from the loss of key brands, with full-year volumes in Australia down 5 per cent on a pro forma continuing basis, while total volumes, including discontinued brands, were down by 13 per cent.
After the purchase of Foster's, SABMiller lost third-party brands Foster's brewed under licence, including Corona, Asahi and Stella Artois.
But it looks to have resurrected the VB brand, which had a national market share of 25 per cent in 2000 but that declined every month for the next 10 years.
Foster's relaunched VB last year, lifting the alcohol content back to 4.9 per cent from 4.6 per cent, and reinstated its popular "hard earned thirst" advertising slogan. This has helped return VB to growth.
Latest brewing industry figures show that VB regained its crown as Australia's biggest-selling beer, knocking off Queensland interloper XXXX Gold, which took the No.1 position in May last year.
Latest Nielsen figures show that VB has a market share of 12.2 per cent of the off-premise beer market, against 11.9 per cent for XXXX Gold.
Frequently Asked Questions about this Article…
Foster's returned to growth in Australia in the final quarter of 2013, with volumes rising about 3% in that quarter, a recovery underpinned by stronger performance from its flagship VB beer.
VB recorded sales growth for a second consecutive quarter since its re‑launch in October, and that stronger performance helped lift Foster's volumes. The brand's recovery was a key factor in the quarter‑on‑quarter improvement.
Foster's relaunched VB by increasing the alcohol content from 4.6% back to 4.9% and reinstating its popular 'hard earned thirst' advertising slogan. According to the article, these moves helped return VB to growth.
Yes. Latest brewing industry figures cited in the article show VB regained the crown as Australia's biggest‑selling beer, overtaking XXXX Gold.
Latest Nielsen off‑premise figures in the article put VB at a 12.2% market share versus 11.9% for XXXX Gold, giving VB a narrow lead in that channel.
After SABMiller paid more than $12 billion for Foster's in 2011, the brewer lost several third‑party brands that Foster's had been brewing under licence — including Corona, Asahi and Stella Artois — which contributed to an overall decline in volumes.
Despite VB's resurgence, the brewer continued to suffer from the loss of key licensed brands. On a pro forma continuing basis, full‑year volumes in Australia were down about 5%, and total volumes including discontinued brands were down around 13%.
The article highlights a mixed picture: a successful brand relaunch (VB) producing sales momentum and market‑share gains, but broader volume declines tied to lost licensed brands. Investors should note the positive signs for VB while also recognising the headwinds from reduced overall volumes reported in the trading update.
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