Introduction

Foster’s Lager is a type of lager owned worldwide by a brewing company called AB InBev. The beer is brewed under license in different countries and has branches in 150 countries.  The official website of the beer claims that it is the “largest selling Australian beer brand in the world.” Foster’s Lager is the premium brand of the Australian brewing company, Carlton & United Breweries (CUB). The lager had a considerable premium image in Australia until the 1970s. However, according to “The Oxford Companion to Beer”, the beer is not very popular in the country compared to other beers owned by CUB. Currently, the biggest market of Foster’s lager is the UK. (1)

Foster’s Lager is known for its distinctive bold taste. The flavouring flower and a unique kind of yeast impart the bold flavour to the drink. Another characteristic feature of the drink is the addition of cane sugar instead of malt. (2)

Foster’s Lager has 5 percent alcohol content; however different variants of the brand has higher alcohol content.

The following video provides a brief review about Fosters:

Video Source: https://www.youtube.com/watch?v=2NZF6jvewT8 . Foster’s Lager- Beer Review by James Knott

Origins

Beer, one of the oldest brewed recipes in the world, was first introduced in Australia during the British colonial period. It was Captain James Cook who brought the drink in his ship during 1768. Drunkenness was a grave issue in the country in the nineteenth century, so as a healthy option, beer was more popularized in Australia. Lager, the type of beer conditioned at low temperatures, was not introduced in the country till the 1880s. The first brewery in Australia to brew lager was Cohn Brothers’ Victoria Brewery in Bendigo in 1882.

Foster’s Lager was introduced in 1889 by siblings William M. and Ralph R. Foster. The brothers, who were originally from New York, bought advanced brewing equipment with them and created a modern brewery. This created a global impact in the country, as the brothers brought with them a German-American brewer, Sieber and a New York refrigeration engineer, Frank A. Rider, who shared their experience. The introduction of the beer created local impact as well. Till then, the beer aficionados were consuming warm English ales. The brothers introduced the country’s first bottom-fermented lager, a bold drink that suited the country’s weather. The Foster brothers introduced it in the market in February 1889. The committed brewers sold the beer along with ice to make it enjoyable in the warm Australian weather.

The historical relevance of Foster’s is such that it was for the first time, refrigeration was introduced in Australia. The Foster brothers bought the refrigeration equipment and introduced the initial lager brewery to use refrigeration in Australia.

Key Milestones

The beer was first introduced in the Australian market in February 1889 by siblings William M. and Ralph R. Foster. The brothers, who were originally from New York, introduced the country’s first bottom-fermented lager, through refrigeration. Later, the brothers expanded their business and started exporting the product. Foster’s was initially exported in 1901 to the Australian fighters who took part in the Boer war in South Africa.

In order to join hands with other small breweries in Australia, the beer company combined with other companies to form Carlton & United Breweries (CUB) in 1907. The sales reached new heights in 1910-11 when there was an 83.8 increase in sales. In 1956, the company adopted highly shippable steel cans. It expanded its wings in the coming years, and the beer was exported to the UK in 1971 and the USA in 1972. It is known as “Foster’s Oil Cans” in the USA because Foster’s cans resemble motor oil cans. (3)

An interesting turning point was In 1981, when the beer was available on draught in Australia.  Until then, the liquor was only available in bottles and cans in the country. It was introduced under license by Watney Mann and Truman Brewers. During 1986, the company was renamed as Foster’s Brewing Group. This was a phase when the company underwent several acquisitions. Courage Brewery, an English brewery, acquired CUB and started distributing Foster’s. The name of the company was changed to Foster’s Brewing Group.

In 2011, CUB along with Foster’s were bought by the South African and British conglomerate SABMiller. The brand was acquired by Anheuser-Busch InBev, a Brazilian-Belgian brewing company in 2016. In 2019, the company agreed to sell its products to Asahi Breweries in Tokyo, Japan. According to latest news, the takeover could help revive the plunging beer sales since 2016-17.

Brewing Science and Industrialization

The progression of the science of brewing had an impact on Foster’s Lager. The brewers of Foster’s Lager were well aware of the trends of brewing and the flavors that impact the taste. William M. and Ralph R. Foster, who introduced the beer, brought with them the German American brewer, Sieber and New York refrigeration engineer, Frank A. Ride, who had their own ideas of brewing. The innovative bottom-fermented lager fully charged with carbonic acid changed the beer culture of the country. The refrigeration system kept the beer cold and helped to mature it for six weeks.

Hops are the primary substances that provide the unique flavor to beer. Hops allows the taste buds to enjoy the varying sweetness and bitterness of beer. The brewers of Foster beer used Pride of Ringwood hops, that were exclusively grown in certain parts of the country. Just like tempering Indian cuisine with spices at the end of the cooking process, the hops were added at the end of the brewing process to retain the freshness of the lager, and to minimise losses to the yeast sediment.

Yeast is an ingredient that makes beer alcoholic and carbonated is yeast. In Foster’s Lager, they used Tim Foster’s yeast (which the manufacturers still use) that imparts the bold flavor. The characteristic quality of beer is such that it doesn’t produce the rancid taste of sulfur that some other beers have. The brewers were aware of the characteristic quality of sugar to neutralize flavors. They added domestic cane sugar, along with the conventional malt. That was the period when adding sugar to beer was in vogue, unlike the coming years when rice and barley malt were widely used. The quality of water makes or breaks your beer, and innovators from New York who introduced Foster’s Lager to Australians were well aware of that fact. They took the water that is used for mixing the starch source (known as mashing) from the nearby Yarra river and claimed that the water added to the unique flavor of the beer.

The industrialization has a significant impact on Foster’s Lager as well. There were major changes in the Australian brewing industry during the 1980s. The popular drink had arrived in the country at the beginning of British colonisation. From Captain James Cook who brought the drink in his ship during 1768, it was a gradual progression.

One of the major reasons for the popularity of beer was the industrial progression of Australia in the late 1880s. Employees in the manufacturing sector received consistent salary so they brought beer during work. When Foster’s Lager was introduced, lager was unavailable in the country. The people were unaware of the drink which required longer maturation period than ales, and were much more temperature sensitive. In the Australian markets, the slow fermented lager soon replaced ale. The popularity was such that within a few years, it was acquired by Carlton & United Breweries (CUB) in 1907. During the 1880s, several brewing companies mushroomed. The first lager was brewed in 1882 by Cohn Brothers. Foster brothers introduced refrigeration, which was another turning point. Equally noticeable was the introduction of lager in Queensland two years later. An important change was a decrease in the sale of the product during 1890s due to recession. Globalization impacted the sale in 1970s when the Lager was available in the USA and UK.

Beer Style

The beer was first introduced in the Australian market in February 1889 by siblings William M. and Ralph R. Foster. Foster’s Lager is available in bright golden color drink with a creamy foam head. It has a moderate aroma. Water, malted barley, glucose syrup, barley, hops, and hop extract are the ingredients.(4) Hops are the primary substances that provide the unique flavor to beer. Hops allows the taste buds to enjoy the varying sweetness and bitterness of beer. The brewers of Foster beer used Pride of Ringwood hops, that were exclusively grown in certain parts of the country. The hops were added at the end of the brewing process to retain the freshness of the lager, and to minimise losses to the yeast sediment.

Yeast is an ingredient that makes beer alcoholic and carbonated is yeast. In Foster’s Lager, they used Tim Foster’s yeast (which the manufacturers still use) that imparts the bold flavor. The characteristic quality of beer is such that it doesn’t produce the rancid taste of sulfur that some other beers have. The brewers were aware of the characteristic quality of sugar to neutralize flavors. They added domestic cane sugar, along with the conventional malt. That was the period when adding sugar to beer was in vogue, unlike the coming years when rice and barley malt were widely used.There are 2.7 grams of sugar per 100 ml of Foster’s. The quality of water makes or breaks your beer, and innovators from New York who introduced Foster’s Lager to Australians were well aware of that fact. They took the water that is used for mixing the starch source (known as mashing) from the nearby Yarra river and claimed that the water added to the unique flavor of the beer. The lager has 4 percent alcohol content and there are 34 calories per 100 ml. The drink is not vegetarian or vegan.

The WI and WWII Era

Both the world wars of the last century has disrupted the beer production all over the world. The war had its impact in Australia as well.

Like other countries, the beer production in Australia also dwindled during World War I that happened from 1914 to 1918. There has been a gradual dip in the sale of beer from 1890s itself due to recession. However, the sales increased a few years before the war. In order to join hands with other small breweries in Australia, the beer company combined with other companies to form Carlton & United Breweries (CUB) in 1907. The sales reached new heights in 1910-11 when there was an 83.8 increase in sales. Australia was part of the World War, as part of British Empire. Australian soldiers volunteered for Australian Imperial Force. During the war, beer was the most popular form of alcohol in Australia. Statistics says that the Australians consumed around 75 litres of beer during one year during war. An anti-German wave was there during the period, which forced the Australian society not to buy German-sounding drinks. This forced CUB to discontinue Bismarck, Rheingold and Strasburg brands of lager beer in 1914. Foster’s Lager was available in the market during the period. The intelligent advertisers made it clear that the lager was not produced or sold by Germans, but by British people.

World War II was from 1939-1945. During the time, limits were imposed on beer production in Australia, just like other parts of the world. The sales output was reduced to two-thirds. The shortage created some significant changes in the beer culture of the people of Australia, which affected the sales of Foster’s Lager as well. The lager was only available in black market. Along with other beers, it was unavailable in public beers, and the customers had to buy it from lounge bars at inflated prices. This resulted in several brewers concocting beers illegally at home. However, it was not practical to brew Foster’s Lager at home, as it required customized equipment for bottom fermenting. Unlike other beers that can be prepared within two to three weeks, lager requires months or fermentation in low temperature. Foster’s Lager sales dwindled as a result. By 1946, wartime restrictions were lifted. However, as with the case of other beers, it took several years for Foster’s Lager to flourish in market again.

Consolidation and Globalization

Foster’s Lager is a beer that has undergone a fair share of acquisitions and consolidations over the years. Though it is known as an Australian beer, currently, Foster’s is owned by South African brewing group SABMiller. The market expansions started during the pre-war era itself. The beer was first exported in 1901 to the Australian fighters who took part in the Boer war in South Africa. In order to join hands with other small breweries in Australia, the beer company combined with other companies to form Carlton & United Breweries (CUB) in 1907. The sales reached new heights in 1910-11 when there was an 83.8 increase in sales. Post war, the global waves created repercussions in the sale and marketing of Foster’s Lager as well. It expanded its wings in the coming years, and the beer was exported to the UK in 1971 and the USA in 1972. It is known as “Foster’s Oil Cans” in the USA because Foster’s cans resemble motor oil cans. The company was introduced under license by Watney Mann and Truman Brewers in 1981.

1986 was a year when the company underwent several acquisitions. Courage Brewery, an English brewery, acquired CUB and started distributing Foster’s. It had name changes to withstand the demands of the global market. The company was renamed as Foster’s Brewing Group during the year. In 2011, CUB along with Foster’s were bought by the South African and British conglomerate SABMiller. The brand was acquired by Anheuser-Busch InBev, a Brazilian-Belgian brewing company in 2016. In 2019, the company agreed to sell its products to Asahi Breweries in Tokyo, Japan. According to latest news, the takeover could help revive the plunging beer sales since 2016-17. Currently, the UK is the biggest market of Foster’s Lager.

The standard measure, ABV (Alcohol by Volume) of Foster’s Lager depends on the demands in different countries. That has changed over the years based on customer’s preferences. In Europe, Australia and India, the beer is 4%, while it is 5% in the US.

Marketing and Branding

Some of the companies that own marketing rights to Foster’s include Heineken International in Europe and CIS, MillerCoors in the U.S., Labatt in Canada and Brazil Kirin in Brazil.

Foster’s Lager owned by a South African brewing group has dwindling sales in Australia. It is therefore surprising to learn that the brand relies on commercial nationalism (5) for its marketing purposes. The packaging of the beer is rich with references to the country’s culture and symbols. There is the image of Southern Cross constellation and that of a Red Kangaroo, the national symbol of Australia. Equally noticeable is the blue label of the package. The TV viewers might know Foster’s through the popular advertisement, ‘How to Speak Australian’ and slogans like ‘Foster’s, Australian for beer’ and ‘Think Australian, Drink Australian’. The 15-second advertisement showcases a man giving driving directions in Australian accent, with the slogan in the background. The company had its share of controversies in the past regarding the branding. In 2015, a person from New York filed a case as he believed the company deceived him in thinking the beer was imported from Australia.

It is interesting to see how the marketing tactics of the company has transitioned over the years. According to sales surveys, there is a dip in the number of people drinking alcohol. This has affected the sales. The earlier advertisements of the product showed topics like an old man’s pub where men go for a mid-week pint. However the preferences changed of late, so the company has decided to revive its marketing campaigns. Recently, Foster’s was in the news as it decided to reboot the sales by reviving its marketing campaign which was popular between 2010 to 2015 that featured Brad and Den.(6) The team is back again with the campaign, however this time they have decided to shorten the duration of the advertisement and to roll it out across different media platforms. The makers say the campaign would have contextually relevant questions and would reflect changing media habits.

https://www.youtube.com/watch?v=x98NRIB7W9A

Ship Hotel, Hobart Town, in the period of 1870-80

Source: http://www.auspostalhistory.com/articles/1570.shtml

Modern Era

These days, brewers use a variety of modern technologies such as computer automation, E-commerce, digital marketing, analytics and machine learning to improve the quality of beer and to reach it to wider customers. Foster’s make use of modern digital marketing tools to recreate Australian imageries and the personas of stereotypical people of the country to market the product as a native Australian drink. This is obvious in the recent marketing campaign featuring Brad and Den that connects with the Australian population. The changing preferences of the audience reflect the marketing campaigns. This is the reason why the company has decided to reboot the sales with the motto, old wine in the new bottle. The marketing team strongly believes that shortening the commercials and adding questionnaire to the campaign would bring changes,

Ironically, since Australia is not the biggest market of Foster’s Lager for a long time, reaching more countries has been a prime marketing tactic of the company during the past few years. The latest to join the bandwagon is Nepal, the Asian country. In 2019, a private company, Raj Brewery launched Foster’s Lager and Gold Strong Beer in Nepal. Interestingly, the company has partnered with Anheuser-Busch InBev, the Brazilian-Belgian brewing company that acquired the brand in 2016. Another indication of a growing Asian market of the company is the move to sell its products to Asahi Breweries in Tokyo, Japan in 2019.

The Lager is more popular in the UK than in Australia, and is the second best-selling lager. Initially, the beer started to gain momentum as a lighter European style lager. However, the UK company has full control of the brand now. Interestingly, in recent years, Foster’s Group wine sale is spiraling in the UK market. This also shatters the media-created view that Australians love beer. The studies show that they prefer wine over beer, especially the new generation. The latest attempts of the company to revive sales using marketing campaigns is the final straw to revive the brand.

References

Oliver, G. (2011). The Oxford Companion to Beer. Retrieved from https://www.amazon.com/Oxford-Companion-Beer-Hardcover/dp/0195367138

Fleming, M. (2019). Three brands, three strategies: Will any put the fizz back into lager sales?. In MarketingWeek. Retrieved from https://www.marketingweek.com/brands-strategies-lager-sales/

Bowers, S. (2011). Foster’s may be ‘the Australian for lager’ but it is brewed in Britain. In The Guardian. Retrieved from https://www.theguardian.com/business/2011/jun/21/fosters-lager-brewed-in-britain

Foster’s Beer. (2019). In Nepali Times. Retrieved from https://www.nepalitimes.com/business/fosters-beer/

Foster’s Beer. (2017). The Taste of True Refreshment. Retrieved from https://www.fosters.co.uk/faqs

White L. (2009). Foster’s Lager: From Local Beer to Global Icon. In Marketing Intelligence and Planning. Retrieved from https://www.academia.edu/4678066/White_L._2009_Foster_s_Lager_From_Local_Beer_to_Global_Icon_Marketing_Intelligence_and_Planning_27_2_177-190

Fleming, M. (2019). Foster’s on why it’s bringing back ‘Good Call’ after a four-year absence. In MarketingWeek. Retrieved from https://www.marketingweek.com/fosters-bring-back-good-call-ad-campaign/