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Fosters to Limit Alcohol in Premixed Drinks, Drop Energy Ingredients
March 21, 2008

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News Summary

Responding to the Australian prime minister's crackdown on binge drinking, Foster's Group Ltd. announced that it will cap the amount of alcohol in its premixed drink products, stop adding "energy" ingredients like caffeine and taurine to drinks, and drop brands like the high-alcohol Cougar XS, a mix of bourbon and cola.

Bloomberg reported March 20 that single-serving containers of Foster's mixed drinks will be limited to 20 grams of alcohol, although that is still equivalent to the amount of alcohol in two standard drinks.

"We have listened to stakeholder concern and we are taking these steps proactively and voluntarily," said Jamie Odell, head of Foster's in Australia and Asia Pacific. "While these beverages have never been prominent in Foster's portfolio, we feel it is important to take this step ... We believe strongly that the real issue is not 'bad' products, but rather poor drinking behavior. However, we also acknowledge community concern that higher alcohol and added energy drinks may be particularly vulnerable to abuse."

Earlier this month, Prime Minister Kevin Rudd unveiled a $49-million campaign to combat underage and binge drinking in Australia and promote responsible alcohol consumption. The plan has been endorsed by the leaders of Australia's major sports leagues, who pledged to adopt codes of conduct for moderate drinking. Sports stars also will appear in ads warning against excessive alcohol use.

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