Carlton & United Breweries (CUB), the domestic brewing arm of Australian drinks group Foster's, has signed a new 10-year contract to brew, distribute and market Interbrew's Stella Artois beer brand Down Under.
CUB has already been producing Stella Artois in Australia for several years, and it is because of the success of the brand there that Interbrew has agreed to extend the marketing licence. CUB said that the Stella brand had grown by 40 per cent over the past two years, and that it is now one of the top 10 premium imported brands by volume in Australia.
"CUB has achieved outstanding results with our brand since the start of the licence in 1997," said Hugo Powell, CEO of Interbrew. "We are pleased to reaffirm our longstanding and successful partnership for another 10 years. With CUB's proven strengths in brewing, marketing and distribution, we are confident that Stella Artois will continue to deliver significant growth in Australia."
CUB managing director Trevor O'Hoy agreed: "This long term commitment confirms the confidence Interbrew has in CUB and the commitment both parties share for the future growth of Stella Artois in Australia."
He added that the premium segment of the total Australian beer market had shown phenomenal growth over the past five years, with year-on-year volume growth of around 15 per cent. Premium beer now accounts for almost 7 per cent of the total beer market in Australia, he said, adding that CUB's combined domestic and imported premium beer portfolio accounted for almost 70 per cent of this growing market, according to the latest data from AC Nielsen.
"CUB is ideally positioned to benefit from this growth," said O'Hoy. "We are Australia's leading importer and distributor of international premium beer brands covering a portfolio of strong brands. This new arrangement clearly supports our growth strategy for premium brands. With Stella Artois we have one of the most highly regarded and most successful premium lagers in the world.
"Stella Artois' reputation, founded on its Belgian heritage and great premium qualities, is attracting an increasing following of premium beer aficionados in Australia," he said.
While CUB has worked hard to promote the brand since taking over the licence five years ago, sales of Stella have also been boosted by Interbrew's Belgian Beer Cafés, of which it has four across Australia and 40 in total throughout the world, including the Netherlands, France, Spain, Hungary, Croatia, Slovakia, Romania, Ukraine, the Czech Republic, the US, New Zealand and Belgium.
These typically Belgian-style bars, with their strong focus on serving draught beers, have been a popular platform on which to raise awareness and trial of Stella Artois. Australian Leisure & Hospitality (ALH), a division of CUB, owns the BBC outlets in Adelaide and Perth; the two other Australian outlets are in Melbourne and Sydney, and two more are due to open next year.
"Given the proven attraction of the Stella Artois brand and CUB's strengths in brewing, marketing and distribution, we are confident that Stella Artois will continue to deliver significant growth in Australia," O'Hoy said.