There are concerns for the market share held by Foster’s Group Ltd as beverage analysts see the penetration of Lion Nathan’s Boag’s brand increasing in popularity, in direct competition with Foster’s Victoria Bitter, according to The Age.
Goldman Sachs JBWere analyst Ian Abbott said that if Boag’s market penetration continues, it could hurt Foster’s national market share and cost the wine and beer group about $100 million in revenue and $40 million in pre-tax earnings.
Mr Abott said that social trends are working in Lion Nathan’s favour, with consumers increasingly willing to try new brands, The Age said.
In February, Foster’s revealed its net profit for the six months to December 31 fell to $355.7 million, compared to $411.4 million in the previous comparative half year, hurt by a strong Australian dollar.
The company also said a stabilising US economy should boost the its momentum in the second half.