SABMiller’s top brands decline

Is it because Australian beer drinkers are shunning traditional brands that SABMiller on 23 May 2014 had to report that three of its top Australian brands have witnessed declines in volumes over the past year?

“Victoria Bitter [better known as VB] declined by one percent and Crown Lager declined, reflecting both a strong prior year comparative and price compression from imported brands,” SABMiller said in its March 2014 full year results, released on 23 May 2014.

However, SABMiller insisted that the long-term prospects were good for its Crown Lager and Victoria Bitter brands, despite some negative reaction to the new Crown Lager recipe. Observers say that there has been a marked flavour change since Crown Lager went all malt. Apparently, it now has a strong DMS vegetable note that would have been anathema to old school CUB brewers.

Still, SABMiller managed to report strong volume growth in its mainstream Carlton Dry and Carlton Mid brands as it looks to promote its premium beers.

Brands such as Peroni Nastro Azzurro and craft brand Fat Yak all did well over the past 12 months, the brewer reported.

The brewer also said a focus on premium growth platforms had delivered 10 percent volume growth in the super-premium portfolio.

SABMiller saw had a 3 percent volume decline and did worse than the broader Australian beer segment, which posted a 2 percent fall in the same period.

Australian media said that SABMiller is still smarting from the exodus of key Australian licences and distribution deals in the wake of its purchase of Foster’s in 2011 for AUD 12.3 billion (USD 13 billion), such as the biggest-selling premium beer Corona, which was lost to Lion. Lion managed to pick up most of these deals and has since usurped Foster’s position as Australia’s number one brewer.