Foster's Ups Spend on VB

By Andrew Starke

Iconic beer brand Victoria Bitter will enjoy increased support this financial year with the Foster’s Group committed to doubling its marketing spend to more than $30 million.

The campaign is part of a broad strategy that has so far included a new advertising campaign, ‘The Regulars’; a low-carb brand extension, VB Raw; and a pop-up bar promotion.

The increased marketing spend coincides with the VB brand’s loss of market share with recent figures showing that it now has 15.9 percent of the local beer market, down from 21.2 percent three years ago.

However a spokesperson for VB said Foster’s had been encouraged by the trade’s support of its promotions and brand extensions.

While its days of dominating the Australian beer market are probably over, VB continues to feature in the top three (by value and volume) beers in each Australian state and territory.

“Like the Titanic, VB is a large brand and it takes time to turn things around,” a spokesperson told TheShout.

Unlike the ill-fated passenger liner, there are some encouraging signs for VB.

Over four million VB Raw stubbies have already been sold despite the brand extension only launching in September last year.

However, some analysts have been less than impressed by the initial sales numbers posted by VB Raw and mid-strength VB Gold and believe that urgent action is needed to prevent further market share erosion.

[Wed 13/01/2010 02:08:59]