FOSTER’S

BEER

Jayesh V Kotekar

02RRC05025

M.S.R.C.H.M

HISTORY OF BREWING IN AUSTRALIA

The first recorded details of brewing were by Mr. John Boston, arrived in 1794.

The beer was a poor product and production soon ceased.

In 1835 Kent brewery opened with trademark of “White Horse” of Kent.

John Warren built South Australia’s first brewery 1836 Adilaide

Western Australia’s first brewery was established in Perth, in 1837.

Melbourne’s first brewery was established in 1838.

The first brewery in Queen’s land was established in

1860.

Early production in Australia was based on English

method of “Top fermentation”.

Soon the “Top fermentation” was replaced by “Bottom

fermentation” in 1888 by Fosters Brewing company.

History Of The Carlton United Breweries

(CUB)• In 1886 two brothers W.W and R.R. fosters stepped

off the boat in Melbourne from New York City.

• Invested £48000 to build Melbourne’s most modern Brewery in Collingwood.

• The brewery was designed to brew Australia’s first bottom fermented lager, a crisp refreshing beer style.

• The first Fosters’ lager prototype was brewed in November 1888.

• Just as the brand was beginning to establish itself, for some inexplicable reason the brewery was forced to close

• Fosters sold the company to a Melbourne Syndicate and returned to the U.S.

• Fosters won the first prize in the centennial exhibition of International Brewing

• In 1899 Fosters Exported its first beer in a shipment.

The Carlton United Breweries

• Competition in the market with other breweries in 1907.

• The company decided to amalgamate and Carlton and United Breweries proprietary Ltd (CUB) was formed on 8th May 1907.

• By 1910 to 1911 Fosters lager sales had increased by an outstanding 83.8% and the brand never looked back.

McCracken's City Brewery LimitedVictoria Brewery Carlton BreweryCastlemaine BreweryShamrock Brewing and Malting CompanyFoster Brewing Company

MARKET SEGMENT

Foster’s In India• Fosters is the first foreign brewery to establish

operations in India located at “Foster’s India Ltd M-99, MIDC, Waluj, Aurangabad ”

• Invested a $ 20 million into an 18 million brewery located in Aurangabad

• Production commenced in June 1998.

• Fosters has the second largest share in the Mumbai City.

The Product• It’s a light beer category. It is by definition extremely

light in colour & body & mild in flavour

• Developed using innovative process of ultra high gravity brewing

Growth Of The CUB

• In 1972 all brand importers started importing Fosters to the U.S.

• In 1976 the CUB sent one million cans to New York.

• New touch to the Fosters in 1993.

• Now it is the third largest selling International beer brand.

• It is the third most widely distributed beer with distribution in over 156 countries.

• Foster’s is brewed in nine countries across four

continents.

Immediate Competitors

• UB is the major competitor for the Fosters

• It has 40% market share.

• The company is focussing in strong beer.

• The market is now skewed towards strong beer with more than 60% of market.

• Shaw Wallace - Royal Challenge Premium Lager, Haywards 2000 Premium Lager, Haywards 5000 Super Strong, Hi-Five and Lal Toofan.

• South African Breweries India Ltd. - Knock-Out, Continental and Three Lions.

FOSTERS BEER

• Goal of Fosters stated by Pradeep Gidwani, Managing Director, Foster’s India Ltd. “We want to establish Foster’s as an international premium lager beer”.

• 70% of the Fosters sales come from pint size market.

• In 2000 notched up sales of Rs. 25 crore with around 1.58 million cases sold.

TARGET AUDIENCE• First time drinkers

• Younger crowd

• College /Office going youths

• Maharastra is the highest consumer of beer

• In world wide spirits to beer ratio is 1:7. In India it is 7:1

Liters Per Person – Beer in comparison with

other Liquids

0

10

20

30

40

50

60

2000 2002 2004

BeerBottled WaterCSDsCoffeeDistilled SpiritsFruit BeveragesMilkTeaWine

USP OF FOSTERS BEER

•The Indian pallet and food is more associated with beer. This beer combines nicely with Indian food.

•Has 38 calories per 100 ml which is very less compared to other like red wine 75 cal./100 ml, Champagne 70 cal/100 ml.

IMPORTANCE OF BRAND NAME

• Fosters only suggestion with regard to the brand name is that it should capitalise on the brand heritage which it enjoys

• Fosters Lager is the international flagship brand for the Foster Group.

IMAGE OF THE BRAND

• Beer as a product has been confined to form 5 categories of dominant appeals.

• Fosters product gels well with the friendship image

• Ideal for image as sports person.

• It sponsors to formula I grant prix from 1986.

  UK DL India

Friendship - 50% 50%

Sex 55% - -

Sport 22% 16% 10-

Tradition - - 30%

Relaxation 22% 33% 10%

THE STRATEGY

• Launch the product first time in Maharastra

• Moved on to Goa Pondicherry A.P. Delhi Karnataka

• Concentrate on sponsorship and other promotional activities like cricket and F1 racing.

• Online facilities for promoting and facilitating the sales of the product.

• Company’s strong marketing initiatives

• Awards & Achievements

Style : Full Strength Lager

Alcohol : 4.9%

Carbs : 3.1 grams/100ml

Energy : 158 kilojoules/100ml or 40 al/100ml.

Standard : 1.4 per 375ml, 3.1 per 800ml

Available : 330 ml, 650 ml bottles.