AB-InBev goes easy on the alcohol content
AB-InBev is to cut the alcohol content of their Stella Artois, Budweiser and Beck’s brands in a move to offset escalating duty costs.
Stella Artois, Beck’s and bottled Budweiser will switch from 5.0 percent to 4.8 percent ABV in the on-premise sector in April this year. Bud Draught will remain at 4.3 percent ABV, it was reported in January 2012.
The 0.2 percent change could save GBP 0.02 (USD 0.04) on the cost of duty for every pint of beer sold.
Citing rising raw material and energy costs, AB-InBev implemented a 7.8 percent price increase across its brand portfolio in January.
AB-InBev did not offer any specific reason for the alcohol reduction. In a statement the brewer said: “Our decision to bring Stella Artois, Budweiser [bottles and cans] and Beck’s to the UK market at 4.8 percent ABV during 2012 is in line with evolving UK beer category trends, and we will do so while maintaining the same great taste and quality.”
The move is not without its risks. Readers will recall that both Foster’s and Lion in Australia embarked on this strategy a couple of years ago in order to counteract the automatic six-monthly excise increases. As far as we can tell, consumers did not complain at the time as price rises were minimised but obviously you can’t keep on reducing alcohol to meet every excise rise.
What long-term effect these reductions had on the struggling Australian beer market, however, is of course, hard to measure.
It’s worth noting that many craft beers and domestic and imported premiums tend to have higher alcohol contents than mainstream Australian beers.
That may be the reason why, back in the UK, the number one brewer Heineken is tightlipped about the implementation of their announcement of March 2011 that they would lower the alcohol content of “some of their products” by 2013. At the time, many thought this decision was meant to appease the anti-alcohol watchdogs.
This has not happened yet. Heineken beer is currently 5 percent ABV and Foster’s 4 percent ABV.
We at BRAUWELT International would be very surprised if they lowered the ABV of the Heineken brand itself, especially after having gone to the trouble of re-establishing the standard 5 percent ABV version in 2003. The previous UK version of Heineken Cold Filtered at 3.4 percent ABV was deemed to have seriously damaged the brand.
Informed gossip suggests that Heineken might lower the alcohol of the Strongbow Cider brand which at the moment is 5.3 percent ABV in its packaged form and 4.5 percent in draught (keg).
