Foster's sales lose fizz in challenging market

Dutch brewing giant Heineken today said Foster’s lager was the chief casualty of a “exceptionally challenging” UK beer market in 2008 as sales came under pressure.

The firm, which bought the ’Amber Nectar’ with its acquisition of brewer Scottish & Newcastle last year, said a lack of heavy promotional activity had seen volumes fall 10%.

This was almost twice the damage suffered by the wider UK beer market, which fell 5.1% in 2008 as a worsening economy, alcohol duty hikes, and a poor summer hit home.

Although John Smith’s and Kronenbourg 1664 – two other S&N brands – performed in line with the market, the weaker trading climate was exaggerated by the impact of the pound’s fall against the euro, leading to “much lower than anticipated” sales and profits.