Foster’s to brew Carlsberg

Ah, the promiscuity of brewers. In Australia and New Zealand’s beer duopoly, global brewers don’t seem to mind to be involved in twosomes and threesomes with their competition. Carlsberg is the latest case in point.

In May the Foster’s Group and Carlsberg Breweries entered into a long-term agreement for Foster’s to brew, market, sell and distribute Carlsberg’s beer brands in Australia.

Foster’s CEO, Trevor O’Hoy, was quoted as saying: “We’re delighted to be building a closer relationship with Carlsberg and the brand will be a great addition to our existing international beer portfolio.”

Pity that Foster’s is already distributing Corona Extra and brewing InBev’s Stella Artois under licence. Only in 2002 did InBev and Foster’s extend the licensing agreement for ten years. But had Carlsberg opted for Foster’s competitor, Lion Nathan, it would have found itself in bed with Beck’s and Heineken and Stella Artois, which Lion Nathan brews under licence in New Zealand.

Whether international brewers like it or not, they do not stand much of a choice really. Down-under they have to be brewed locally if they want to sell in bulk or transportation costs would hamper their growth in this lucrative beer market.

In a declining domestic beer market, Foster’s and Lion Nathan are obviously keen on enlarging their international beer brand portfolio. Australians are increasingly enjoying a taste for international premium beer brands with volume in the segment growing by 24 per cent in the year to April, making it the fastest growing segment in the beer category.

Foster’s has over 50 percent of the Australian beer market.

The agreement, effective from 1 July 2007, includes the Carlsberg, Carlsberg Elephant and Tuborg beer brands.