E-Malt.com News article: New Zealand: Lion Nathan’s latest offering to tap New Zealand’s mid-strength beer market

New Zealand’s leading brewer Lion Nathan has launched Steinlager Edge, a new offering created to conquer New Zealand beer's great unknown - the mid-strength market, BusinessDay reported on June, 12.

Available from the beginning of this week, the 3.5 per cent alcohol by volume Edge sits between Steinlager's premium full strength (5 per cent ABV) Classic and lager style light beer Premium Light (2.5 per cent ABV).

Lion hopes the launch of Steinlager Edge will open the tap on a lucrative mid-strength beer market here following the success of its XXXX Gold offering in Australia, where it has grabbed a 10 per cent share of the total beer market.

Brewed with the three hop varieties used in other Steinlager brews, Lion says its latest product boasts the crispness of Steinlager Classic and the aromatics of Steinlager Pure without packing quite the same punch.

New Zealand does not have much of a mid-strength beer market. The only other offering, Rheineck, also brewed by Lion Nathan, has struggled to date to make much of an impact on the drinking scene.

Society of Beer Advocates' Geoff Griggs says the move is a "logical extension of a very powerful brand" but questioned whether there would be much demand among thirsty Kiwis.

"Traditionally, mid-strength has not been very strong in New Zealand because our mainstream beers are only typically 4 per cent, so you're only talking half a per cent less than our mainstream beers," he said.

"That said, if you're a premium lager drinker who wouldn't be seen dead drinking those old- fashioned New Zealand draughts, then a 3.5 per cent option for drivers or lunchtime drinkers does make some sense."

Investment analysts said it was likely that Lion was trying to mirror the success it had seen in Australia. Its XXXX Gold dominates the A$500-million (NZ$635m) mid- strength market with an 85 per cent share. Researcher Nielsen estimates annual XXXX Gold sales are tracking at A$465m.

Whether Kiwis take to a medium-strength Steinlager remains to be seen, but Lion says the Australian and British public will also get a chance to taste Edge.


12 June, 2009