Vb-under Attack From Tasmania

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gava

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thought people might wanna check this out.... sorry if its old..

under attack from Tasmania
ELI GREENBLAT
March 17, 2010 FOSTER'S flagship beer, VB, does not have the vice-like grip on barbecues, parties and beer mats it enjoyed 20 years ago, and it has got some beverage analysts worried.

The beer of choice under the pergola and around the pool is increasingly Boag's, a beer made in Tasmania, owned by the Japanese and sold by the truckload in Victoria.

Goldman Sachs JBWere analyst Ian Abbott believes Boag's, part of Lion Nathan's portfolio, is on the cusp of a fresh wave of popularity in VB's home territory.

He said that if the penetration continued, it could sink Foster's national market share and cost the beer and wine company $100 million in revenue and $40 million in pre-tax earnings. Mr Abbott said that after years of failing to crack the fiercely loyal Victorian market, Lion Nathan now had a brand that resonated with Victorians.

Placing a ''sell'' on Foster's stock, Mr Abbott said the timing was perfect for Lion Nathan as social trends showed consumers were increasingly willing to try new brands.

''If Lion Nathan is successful in gaining traction in Victoria - current growth for Boag's is at least 30 per cent - then this would suggest there is a risk of a modest downwards trajectory to Foster's overall market share over the next few years,'' he said. Foster's market share in Victoria has traditionally been 85 to 95 per cent.

''If Lion Nathan were to direct most of its Boag's mainland Australia capacity - say 60 million litres - to the Victorian market, then in time we believe Boag's alone could capture 15 per cent of the Victorian beer market and Lion Nathan's aggregate position in Victoria would improve to 20-25 per cent market share.

''If Foster's share of the Victorian beer market were to fall from its current 85 per cent to 75 per cent, then, on our analysis, its share of the overall Australian beer market would fall from 50 per cent currently to around 48 per cent - which is the equivalent of a drag of around $100 million in revenue, or around $40 million in EBIT [earnings before interest and tax].''

A spokesman for Foster's said Victorians remained strong supporters, with its CUB beer brands taking nine of the top 10 positions in the state.
 

vykuza

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thought people might wanna check this out.... sorry if its old..

under attack from Tasmania
ELI GREENBLAT
March 17, 2010 FOSTER'S flagship beer, VB, does not have the vice-like grip on barbecues, parties and beer mats it enjoyed 20 years ago, and it has got some beverage analysts worried.

The beer of choice under the pergola and around the pool is increasingly Boag's, a beer made in Tasmania, owned by the Japanese and sold by the truckload in Victoria.

Goldman Sachs JBWere analyst Ian Abbott believes Boag's, part of Lion Nathan's portfolio, is on the cusp of a fresh wave of popularity in VB's home territory.

He said that if the penetration continued, it could sink Foster's national market share and cost the beer and wine company $100 million in revenue and $40 million in pre-tax earnings. Mr Abbott said that after years of failing to crack the fiercely loyal Victorian market, Lion Nathan now had a brand that resonated with Victorians.

Placing a ''sell'' on Foster's stock, Mr Abbott said the timing was perfect for Lion Nathan as social trends showed consumers were increasingly willing to try new brands.

''If Lion Nathan is successful in gaining traction in Victoria - current growth for Boag's is at least 30 per cent - then this would suggest there is a risk of a modest downwards trajectory to Foster's overall market share over the next few years,'' he said. Foster's market share in Victoria has traditionally been 85 to 95 per cent.

''If Lion Nathan were to direct most of its Boag's mainland Australia capacity - say 60 million litres - to the Victorian market, then in time we believe Boag's alone could capture 15 per cent of the Victorian beer market and Lion Nathan's aggregate position in Victoria would improve to 20-25 per cent market share.

''If Foster's share of the Victorian beer market were to fall from its current 85 per cent to 75 per cent, then, on our analysis, its share of the overall Australian beer market would fall from 50 per cent currently to around 48 per cent - which is the equivalent of a drag of around $100 million in revenue, or around $40 million in EBIT [earnings before interest and tax].''

A spokesman for Foster's said Victorians remained strong supporters, with its CUB beer brands taking nine of the top 10 positions in the state.


The best part about this article is the following:

"social trends showed consumers were increasingly willing to try new brands."

It's a big change from the traditional one-beer-and-one-beer-only attitude that we used to see. It's not such a leap from trying new brands, to trying new styles... Encouraging somewhat for the micros?
 

Bribie G

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I've only been to Victoria twice, to Geelong actually and I was amazed at the lineup in many of the local pubs (Waurn Ponds, Queenscliff etc) which went something like this: VB, Carlton Draught, Carlton Mid, Cascade light. End of story. Of course the bigger pubs in the town centre such as the Bended Elbow had a better range. However coming from Queensland with two major Breweries in SEQ it was a shock as even the smallest range runs to about seven or eight beers in most SEQ pubs with Fosters and Lion Nathan reasonably well represented.

Mind you I'm going back 4 or 5 years here so obviously things are going to change for the better.
 

zoidbergmerc

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The best part about this article is the following:

"social trends showed consumers were increasingly willing to try new brands."

It's a big change from the traditional one-beer-and-one-beer-only attitude that we used to see. It's not such a leap from trying new brands, to trying new styles... Encouraging somewhat for the micros?

Yes, that got me excited a little too. Hopefully give the micros a bit more income so they can make more\better beers.
 

zebba

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Mind you I'm going back 4 or 5 years here so obviously things are going to change for the better.
Things have changed a little since then. I'm not saying things are good now, but they are certainly better. Not sure about the country regions though. I know my home town is still a Carlton Draught/Carlton Light town (they lost the Bundy and Coke tap - it's now a second CD tap)
 

reVoxAHB

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Jeeze I purchased a slab of Boags (premium lager) a few weeks ago and couldn't believe how "corny" it was. Dominating corny. I'll never buy the beer again. It was a bit of a novelty purchase, anyway.

And for the record it was more a DMS corny (and really, I wouldn't fault it as DMS necessarily) but more a heavy adjunct-laden corn that was terribly off-putting.

Sure VB has that wheat/carbonic bite, fightin' beer thing going for it and is slagged off here, regularly. And having said that, VB is not a bad beer imo.. it's not a good beer, but hey point is, Boags lager made my bad beer list <_<

reVox
 
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stuart13

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Which just goes to show that we all have different tastes...

Jeeze I purchased a slab of Boags (premium lager) a few weeks ago and couldn't believe how "corny" it was. Dominating corny. I'll never buy the beer again. It was a bit of a novelty purchase, anyway.

And for the record it was more a DMS corny (and really, I wouldn't fault it as DMS necessarily) but more a heavy adjunct-laden corn that was terribly off-putting.

Sure VB has that wheat/carbonic bite, fightin' beer thing going for it and is slagged off here, regularly. And having said that, VB is not a bad beer imo.. it's not a good beer, but hey point is, Boags lager made my bad beer list <_<

reVox
 

PostModern

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I actually prefer Boag's Draught to the Premium Lager. Cheaper too ;)
 

kahn

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I actually prefer Boag's Draught to the Premium Lager. Cheaper too ;)

I agree - I think the Premium is a bit thin/watery. If I have a choice between the two, I always go the Draught.

And if I had a choice between Carlton Draught and Boags Draught, Boags wins any day.
 

booyablack

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+1 to kahn and PostModern.

I had converted from Tooheys New to Boags Draught before I started homebrewing. For a standard commercial beer I think Boags Draught is OK and it was always one of the cheapest cartons at the bottlo so that didn't hurt either!

I actually bottled my latest brew last Sunday that was meant to be a Boags Draught type replica. The recipe I found used Tettnanger hops which I used. They smelled and tasted to be pretty on the money. Does anyone know if Boags uses Tettnanger in their Draught or is it POR like many of the other commercial brews?
 

mika

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A lot of, if, coulds, buts and maybe's in the article. Bit like saying if I won the lottery I could buy a brewery and if people drank enough of my beer I might yet be the person to cost Foster's millions of dollars in potentially lost revenue.... maybe.
 

Dazza_devil

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I wouldn't be bias at all, only drank enough of it to sink the Spirit.
I think that the draught has gone downhill from the old days but that's probably just my tastes improving.
They used to make a Boags Blue Lager that I adored but it was discontinued long ago now :( .
The new Boags Pure isn't too bad on a hot day with a big thirst.
IMO the best they make now is the Wizard Smith Ale and the Boags XXX Red, not available on the North Island though.
From my tastes VB is almost as bad as a West End beer I tried in Adelaide years ago. VB has such a foul odour, almost makes me reach. I've been pissed on it but man the first two or three were hard to put down.
Taking VB sales is nothing to brag about from my point of view.
 

zoidbergmerc

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I wouldn't be bias at all, only drank enough of it to sink the Spirit.
I think that the draught has gone downhill from the old days but that's probably just my tastes improving.
They used to make a Boags Blue Lager that I adored but it was discontinued long ago now :( .
The new Boags Pure isn't too bad on a hot day with a big thirst.
IMO the best they make now is the Wizard Smith Ale and the Boags XXX Red, not available on the North Island though.
From my tastes VB is almost as bad as a West End beer I tried in Adelaide years ago. VB has such a foul odour, almost makes me reach. I've been pissed on it but man the first two or three where hard to put down.
Taking VB sales is nothing to brag about from my point of view.

+1 to everything you just said.

I really enjoy the Boags Pure but the shitty little bottles they come in piss me off, it's like 1 mouthful and they're gone.
 

Bribie G

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Prior to getting back into HB I used to quite like Tasman Bitter (Liquorland, brewed at Boags).
 

Dazza_devil

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Prior to getting back into HB I used to quite like Tasman Bitter (Liquorland, brewed at Boags).


When was that BribieG, I've never heard of it and I used to work at Liquorland, maybe before my time.
 
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The Boags Blue used to my favourite as well.

The red is still pretty good, however they have reduced the alcohol vol in that some years ago - it used to be 5 point something percent.

You can never go past a nice cold Boags Draft though.

Does anyone have any kit or extract recipies for Boags draft?

I always thought they used POR hops in it as they are grown locally, but not sure
 

piraterum

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The thing is VB never claimed to be the best tasting beer, just the best cold beer :p As TISM rightly point out "A Hard-Earned Thirst Needs a Big Cold Beer, but I Drink to Get Pissed"

Boags Draught goes down quite well as a session beer. No frills, does the job.

Boags Pure is just some clever marketing. Tastes like a watered down Draught in a wanky bottle, hence more expensive.
 

Midnight Brew

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Starting to see more and more micro brews on taps at pubs now. Good to have more choice when you go out then just the traditional draught or vic. Ive seen Mountain goat pop up a few places and Fat Yak more so in my area.

Bring on the micros!!!!
 

tazman1967

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I personally dont mind the Boags Premium. For a light beer (cough, cough) the Boags Premium Light aint to bad...for a light beer.
Ps... got a AG recipe for Boags Premium...pretty bloody close.
 
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