Foster’s Group’s share of the Australian beer market slipped below 50% for the first time during the first quarter of 2010, according to Neilsen figures.

The company had a 49.9% market share in the three-month period, down from 55% in 2005, while Lion Nathan had grown from 38% to 40% over the same period.

The decline at Foster’s coincided with a general slowdown in liquor market growth, with annual sales up just 1% overall in the first quarter, compared to 6% growth for the same period in 2009.

Foster’s VB brand was still the biggest beer seller, accounting for 15.1% of sales by volume and 14.7% by value, but sales were down by 8.4% by volume in the quarter. The market-leading low-carb Pure Blonde beer brand fell by 4.2% by volume amid increasing competition.

Credit Suisse analyst Larry Gandler forecast that Foster’s Carlton & United Breweries unit would spend between AUD20m (US$18.2m) to $30m over the next two years in an effort to restore market share, a move that would reduce annual growth in pre-tax earnings to just 2%, compared to 4.8% in 2008-09.

This would probably increase shareholder pressure for Foster’s to split its wine and beer divisions into separate companies, he said. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Stay informed for just £1! *

Subscribe to Just Drinks for unbiased coverage of the global drinks industry, offering insights into the corporate strategies of beverage manufacturers and brands worldwide.


What’s included in your subscription:
  • Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
  • Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot beverages
  • Unrivalled drinks industry comment from leading sector specialists

Ready to stay informed? Subscribe now and gain access to exclusive content.

Subscribe

Have a subscription? Sign in

For further details on subscribing, click here. Need multi-user access? Explore our corporate subscriptions now.

*After your 1-month trial, your subscription will continue at £315 per year.