By Andrew Starke

Foster’s has cut the alcohol content of Australia’s biggest selling beer in a bid to avoid a price hike this month.

The decision comes just weeks after the brewer embarked on a new advertising campaign designed to protect Victoria Bitter’s position as a market leading beer.

Despite the Federal Government’s bi-annual CPI-indexed excise increases applying from August 1, VB will maintain its wholesale price and instead reduce alcohol-by-volume from 4.8 to 4.6 percent.

This will apply to both stubbies and cans and enables VB to dodge the tax on beer, spirits and tobacco, which has seen competing beer brands forced to raise their prices by about two cents per six-pack.

Two years ago Foster’s trimmed its alcohol content from 4.9 percent to 4.8 percent.

“With a microscopic change in alcohol content, VB will come in line with most Australian mainstream beers”, said VB Group marketing manager Paul Donaldson. “The beer tastes exactly the same, has the same standard drinks, and offers better value to stockists.”

The lower alcohol VB will have slightly different packaging from its predecessor to avoid confusion during the change.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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