CUB’s market share to rise after brands transfer from Lion
Following the loss of various AB-InBev brand licences, including Corona Extra in September 2016, Kirin’s Australian unit Lion will be dethroned as the major brewer in Australia. Kirin had a licensing agreement with AB-InBev under which it sold several popular brands. These rights reverted to Lion’s domestic rival CUB after the takeover of SABMiller by AB-InBev.
Australian media say that Lion is Kirin’s cash cow, generating nearly half of Kirin’s profit in 2015 and thus helping to offset a weak performance in Brazil, where Kirin took over the beer and beverage company Schincariol in 2011.
Although Kirin will receive compensation for the cancellation of the licensing deal (up to USD 200 million), the loss of market share in Australia will nevertheless be a blow as the AB-InBev brands accounted for 10 percent of Lion’s volume sales.
The deal will see CUB’s market share in Australia rise from 39 to 47 percent: an extra 8 percent from the AB-InBev brands it will take back from Lion, minus the 2 percent it will lose when Asahi takes over Peroni, which it bought from AB-InBev, together with Grolsch and Meantime, in February 2016 for about USD 2.5 billion. After the reshuffling of brands, Asahi will double its market share to about 4 percent, Lion will have about 41 percent and Coopers 5 percent. The 250 craft brewers combined have a 3 percent market share.
Since Corona Extra is Australia’s fourth biggest selling beer brand, Lion has prepared for life after Corona with the relaunch of its own clear bottle alternative, XXXX Summer Bright Lager, together with a new mango-flavoured version. XXXX Summer Bright has taken a back seat over the past few years, with Corona in the Lion stable.
