Stella could lose its crown as the UK’s leading lager brand to Foster’s in October if its sales continue to fall at the rate they have over the past year.
The AB InBev-owned brand’s sales have fallen 4.6% on volumes down 7% [IRI 52 w/e 30 March]. Meanwhile, Foster’s value sales are up 12.2% on volumes up 9%.
If the two continue on the same trajectory, Stella will be worth £487.6m in October, while Foster’s will hit £492.2m. If Stella’s sales remained at their current level, Foster’s would overtake it in December.
However, AB InBev’s president for the UK and Ireland Inge Plochaet said Stella’s decline, which has cost the brand £24m in lost sales over the past year, was an anticipated result of its strategy to drive value back into the category. Over the period, Stella cut its use of featured space deals by 34.6% [Assosia].
“Our promotional participation was at too high a level,” said Plochaet. “Of course, that comes with consequences such as revenue, market share and volume in the short term, leading to something more sustainable in the long term.”
Heineken UK put much of Foster’s growth down to Foster’s Gold, launched in July 2011. Foster’s, with £51.2m growth, was the only lager out of the UK’s 10 most promoted beer & cider brands to increase featured space deals, by 8.4% [Assosia].
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