Heineken UK is cutting the strength of its Foster’s lager, a decision aimed at leveraging duty savings on weaker beers.
The popular brew’s alcohol content will decrease from 3.7 per cent to 3.4 per cent starting in February.
The brewer stated that this move would allow customers to "benefit from more competitive pricing as inflationary pressures continue to affect the wider market."
It added: "This follows the introduction of differential duty rates by the UK government, which encourage brewers to innovate at lower ABV (alcohol by volume) rates in support of customers wanting to moderate their alcohol consumption."
Heineken also noted the change would support pubs and retailers with a "competitively priced classic lager."
Foster’s ABV was previously lowered from 4 per cent to 3.7 per cent in January 2023.
Heineken UK said: “The decision to adjust the ABV of Foster’s reflects our commitment to helping consumers make responsible choices, while supporting pubs and retailers with a competitively priced classic lager alongside a portfolio of brands across the price and ABV spectrum.
“Our master brewers have spent many months refining the recipe to ensure the taste remains unmistakably Foster’s – crisp, balanced, and refreshing.”
Off-trade sales of Foster’s fell by 13.7 per cent to £252.8 million in the year to April, according to NIQ data.
A number of products have been reformulated since the introduction of new duty savings on beers with an ABV of 3.4 per cent or below in August 2023, including Carlsberg Pilsner, Coors Light and Grolsch.
Last month Beer and cider maker C&C Group said it expected “challenging” economic conditions to persist as the rising cost of living weighs on consumers.
The company added that volumes have dropped in many product categories as “fragile” consumer sentiment has caused many Britons to curb spending on visits to pubs and restaurants.
C&C, which makes Tennent’s and Magners, said sales at pubs and other hospitality venues have been resilient, but growth in beer has been “at the expense of wines and spirits”, which have seen their share of sales slip over the past year.
The firm reported that net revenues slipped by 4% to 825.7 million euros (£724.4 million) for the six months to August 31, compared with a year earlier, driven by changes to its distribution agreement with Budweiser Brewing Group.
The Tennent’s and Bulmers brands saw net revenues grow, while Magners delivered improvements in grocery sales.
C&C said adjusted pre-tax profits lifted by 12% to 32.1 million euros (£28.2 million) for the half-year.
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