Heineken cuts strength of Foster’s lager as duty rises and sales slump

Heineken UK is cutting the strength of its Foster’s lager to take advantage of duty savings on weaker beers.

The brewer said dropping the lager’s strength from 3.7% to 3.4% would allow customers to “benefit from more competitive pricing as inflationary pressures continue to affect the wider market”.

It added: “This follows the introduction of differential duty rates by the UK government, which encourage brewers to innovate at lower ABV (alcohol by volume) rates in support of customers wanting to moderate their alcohol consumption.”

The change, which takes effect from February, would also support pubs and retailers with a “competitively priced classic lager”, it said.

Foster’s ABV was previously lowered from 4% to 3.7% in January 2023.

Heineken UK said: “The decision to adjust the ABV of Foster’s reflects our commitment to helping consumers make responsible choices, while supporting pubs and retailers with a competitively priced classic lager alongside a portfolio of brands across the price and ABV spectrum.

“Our master brewers have spent many months refining the recipe to ensure the taste remains unmistakably Foster’s – crisp, balanced, and refreshing.”

Off-trade sales of Foster’s fell by 13.7% to £252.8 million in the year to April, according to NIQ data.

A number of products have been reformulated since the introduction of new duty savings on beers with an ABV of 3.4% or below in August 2023, including Carlsberg Pilsner, Coors Light and Grolsch.