Wednesday, July 4, 2007

Weaker beer to save brewer millions


The alcohol content of high-selling Australian beer Victoria Bitter will be cut slightly in a move that will save brewer Foster's up to $A20 million ($NZ22.2 million) a year in tax payments.


News Limited today reported the alcohol content of the iconic Melbourne-brewed beer would be cut from 4.9 per cent to 4.8 per cent to cut the amount of excise Foster's pays on the beer it brews.
Foster's spokesman Ben Wicks said the change would not affect the taste of the beer.
"It certainly doesn't affect the taste, which is very important to our VB drinkers. The taste will stay exactly the same. Our master brewers have done a lot of work to make sure of that," he told News Limited.
Industry analyst Mark Bowles said the "significant saving" the brewer would make would be re-invested into the brand, particularly its mid-strength VB variety and its annual summer promotion involving collectible figurines.
"Our estimate would be that they could save potentially between $A10 million and $A20 million," he said.
The lower-alcohol Victoria Bitter would arrive in shops next month.
But the price of Foster's beers was set to rise next month, based on CPI and increased production costs.

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