Big step Four Stella

InBev officially announced the launch of the worst kept secret in the drinks industry last week with the unveiling of Stella Artois 4%, a triple-filtered, lower-strength variant of the UK’s most popular lager. The company’s UK & Ireland president, Stuart MacFarlane, described the launch as “one of the biggest milestones in our business.”

The brand extension – which is presented in sleek silver and black packaging that clearly underscores its reduced strength – aims to capitalise on the new “everyday premium” category. This new segment within the lager segment was worth £158m last year, representing year on year growth of 466%. Much of this growth has been engineered by Stella’s sister brand Becks Vier.

The off-trade launch of Stella Artois 4% is scheduled for August, with the on-trade to follow in November, with MacFarlane promising a “five star launch” befitting of the “third biggest FMCG brand in the market”. He would not be pinned down on the marketing budget, but confirmed that it would be “significant millions”.

“The beer industry in the UK is in decline. If we’re going to make more money it is essential that we add value,” he explained, before pointing out that “premium lager is no longer just about the ABV.” He then went on to explain that today’s consumer insists on a wide choice of products, so InBev does not anticipate a high rate of cannibalisation between the two constituents of the Stella portfolio. He also confirmed that the Peeterman Artois brand extension “also has a place in the portfolio”.

Stella has been an exceptional success story since it was launched in the UK, catapulting to the top of the lager category based on the “reassuringly expensive” advertising campaign. InBev, the world’s number one brewer aims to recapture this spirit of achievement with the $5 launch. “We used to be the most innovative, pioneering brand in the market, but we’ve lost a bit of our edge. But as of today, we’ve truly got that edge back.”

Ben Grant 02/07/08