Foster’s lager in the UK will see a reduction in its alcohol by volume (ABV) to 3.4%, impacting consumers of the popular beer.
Heineken UK, the brewer of Foster’s, announced that the ABV decrease from its current 3.7% aims to qualify the lager for a lower alcohol duty rate.
The company suggested potential price benefits for consumers, stating that “customers benefit from more competitive pricing” due to the reduced tax burden.
This adjustment, slated for February, represents the second instance of Foster’s ABV dilution in the past three years.
Heineken UK attributed the decision to evolving UK government policies that incentivize brewers to produce lower-alcohol options.
The UK government’s new alcohol duty system, implemented in August 2023, levies taxes based on alcoholic strength, making lower-ABV beers and ciders comparatively more affordable.
Following this policy shift, brands such as Carlsberg Pilsner, Sol, Coors Light, and Grolsch have also reformulated their products to fall below the 3.4% ABV threshold for the reduced tax rate in the UK.
Heineken assured consumers that the change would be imperceptible, citing “extensive” consumer testing.
The brewing company affirmed, “Our master brewers have spent many months refining the recipe to ensure the taste remains unmistakably Foster’s – crisp, balanced, and refreshing.”
Heineken highlighted a “continued shift” in consumer preferences towards lower-ABV beers, reflecting a trend toward “a balanced and health-conscious lifestyle.”
Last month, Heineken projected a decline in global beer sales for the upcoming year, attributing it to consumer spending cutbacks due to household budget constraints.
In its third-quarter financial report, the global brewer noted that the UK diverged from the global trend of declining beer volume sales, which the company linked to pressured consumer budgets.
In addition to brewing beers like Birra Moretti, Sol, Strongbow cider, and Heineken, the company also manages nearly 2,400 pubs in the UK through its Star Group subsidiary.
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