Foster’s is set to cut the alcohol content of Australia’s highest selling beer in a bid to avoid a price hike next month.

The brewer, which is embarking on a marketing push in the coming months to strengthen VB’s grip on top spot in the market, is reportedly going to reduce the alcohol content from 4.8 per cent to 4.6 per cent at the start of August.

“This is all about making VB better value so that when every other beer goes up in price this August, VB won’t be,” VB Marketing Manager Paul Donaldson told the Herald Sun.

“The drought has started to really impact brewing. We’ve had ingredient costs go up 20 per cent,” he added. “I think we buy 30 million kilograms of barley a year from Australian farmers so this is one way that we can keep the costs under control and keep the beer good value.”

Mr Donaldson reported that the small change would not impact on taste and will bring the alcohol content in line with most other beers.

“With a microscopic change in alcohol content, VB will come in line with most Australian mainstream beers,” he said. “The beer tastes exactly the same, has the same standard drinks, and offers better value to stockists.”

One of Australia’s biggest ever beer ads will launch next week to promote the brand, the company advised.

The move could save Australia’s largest brewer tens of millions in tax each year and follows a cut in alcohol of 0.1 per cent in the middle of 2007.

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