The Australian brewer Lion Nathan has pulled out of the industry body the Australian Associated Brewers, it was reported today.

The Australian Financial Review said the brewer had left the lobby group, which campaigns on the industry's behalf on issues such as excise, taxation and advertising, because it was becoming frustrated with rival Foster's expansion into wine.

Foster's recently acquired Southcorp to become Australia's largest wine company.

The Financial Review quoted AAB executive director Sam Hudson saying Lion Nathan was having difficulty with the future direction of the AAB given Foster's increasing focus on wine and spirits in its multi-beverages strategy.