International News

Lion to launch White Claw in Australia

LION AUSTRALIA announced in late May that it has entered a partnership with Mark Anthony Brands International, the makers of White Claw Hard Seltzer, to import, market and exclusively distribute the beverage in Australia.

The new agreement between Mark Anthony Brands International and Lion will give Australians their first taste of White Claw Hard Seltzer from October this year.

Launched in 2016, the U.S. brand dominates the seltzer category with close to 60% market share, almost three times the size of its nearest competitor and in the process has become something of a cultural phenomenon, with passionate consumers in their millions championing the brand online.

The deal marks a significant step forward in the seltzer category for Lion in Australia. Initially Lion will import and distribute three leading variants – White Claw Mango, White Claw Natural Lime, and White Claw Ruby Grapefruit, with more to come.

James Brindley, Managing Director of Lion Australia said he was looking

IWSR forecasts 5 years for beverage alcohol to rebound

THOUGH WORLDWIDE beverage alcohol volume increased slightly in 2019, reversing declines from the year prior, research from IWSR Drinks Market Analysis indicates it will be five years before the global industry rebounds from the ongoing COVID-19 crisis.

In a release issued in late May, IWSR, regarded as the leading authority on the global beverage alcohol market, said that total global alcohol consumption, led by increases in beer and ready-to-drink products, grew by +0.1% in volume and +3.6% in value in 2019, but losses in the months-long near complete shutdown of bars and restaurants across the world this year has not been offset by upticks in liquor retail and ecommerce.

Asahi acquires Carlton & United Breweries

Asahi Beverages announced in May that Australia’s Foreign Investment Review Board had approved its acquisition of Carlton & United Breweries (CUB). The approval represented the conclusion of the regulatory review process and CUB joined Asahi Beverages on 1 June.

CUB will become a business division of the Asahi Beverages Regional Hub within Oceania, along with Asahi Lifestyle Beverages, Asahi Premium Beverages and Asahi Beverages New Zealand.

IWSR expects this to lead to doubledigit declines in 2020, which it estimates will take until 2024 to reach 2019 pre-COVID-19 levels (though in the UK and US, IWSR forecasts that pre- COVID -19 beverage alcohol volume levels likely won’t return until after 2024). Global travel retail, severely affected by widespread travel restrictions, will see a particularly harsh decline in 2020 but is expected to reach pre-crisis levels by 2024.

“While we’re still assessing the full impact of the current COVID -19 situation, it’s very clear that the pandemic is set to cause a deeper and more long-lasting after-effect to the global drinks industry than anything we’ve experienced before. Even the downturn following the 2008 financial crisis was less severe than what we are seeing now,” says Mark Meek, CEO of IWSR Drinks Market Analysis. “In many ways, 2019 was perhaps the last ‘normal’ year for the drinks industry.

forward to seeing Australia’s response to the seltzer that has taken North America by storm. “The popularity of White Claw cannot be disputed. Despite the fact the product has not actually been available in Australia up until now, it has well and truly earned its place in popular culture and is the market leader globally in this exciting new category. It is the most sought-after beverage brand in the world right now,” Brindley said.

“It is a natural fit for our growing portfolio of adult beverages beyond our core beer range – and taps into a number of consumer trends around lower calorie and lower sugar products. We believe the seltzer category represents a significant growth opportunity for Lion over the coming years and we are looking forward to bringing the biggest seltzer brand in the world to Australia.”

“As restrictions ease, long term recovery is expected to be slower than the initial bounce back – driving a ‘Nike Swoosh’ rebound shape,” adds Meek. “Like many other industries, it’s incredible how a few months of lockdown will result in several years of recovery, but beverage alcohol has proven to be remarkably resilient in previous downturns, and this should be no different. A strong focus on innovation, premiumisation, and new routes to market such as ecommerce, are all factors which will help contribute to the industry’s rebound and future growth.”