Grolsch Premium Pilsner has become the latest beer to see ‘drinkflation’, with the strength of Dutch lager dropping to 3.4% abv in the UK.
The brew, which carries an abv of 5% in Europe, was relaunched in the UK by Asahi in 2020 at an abv of 4%.
However, it has now been dialled down further to 3.4% to take advantage of new tax rules offering a discount on weaker brews. The reduction in abv will save Asahi UK 23p in excise duty for every 440ml can of Grolsch sold.
Since changing Grolsch strength in the UK to 4% abv, Asahi UK had “learnt a lot” about “consumer preferences and evolving consumption trends”, a spokeswoman for the brewer said.
“Following much analysis, we decided to reformulate Grolsch to a new abv of 3.4%, which went into market earlier this year,” the spokeswoman said. “We are confident this still delivers an excellent premium beer that will appeal to a broad range of consumers.”
Grolsch’s sales were in major decline prior to the reformulation, sliding 55.8% to £3.4m on volumes that have tanked 60.6% [NIQ 52 w/e 21 April 2024].
It remains stocked in Sainsbury’s stores, but was delisted by Asda in August, according to Assosia data.
Grolsch is not the only Asahi-owned beer to be watered down by Asahi this year. Dark Star Hophead was reduced from 3.8% to 3.4% abv in the summer. Other high-profile brews to be ‘drinkflated’ down to 3.4% abv in recent years include Carlsberg Danish Pilsner, John Smith’s Extra Smooth and Bud Light.
It comes as losses mount at the UK arm of Japanese brewer.
Revenues at Asahi UK in the year ended 31 December 2023 up 2.9% to £527m, but pre-tax losses swelled to £14.1m, up from £6.4m the year prior, according to accounts filed at Companies House earlier this month.
“Many other businesses” including Asahi UK’s brewing rivals, also reported major losses last year, the spokeswoman insisted.
“As with many companies operating complex supply chains, we have experienced an extremely challenging economic climate over recent years,” she said. “While we have seen relief from some of the energy and raw material highs of recent years, inflation remains high across the markets where we operate, with many costs still exorbitantly high. Achieving sustained profitable growth in this environment is difficult.”
In March, Asahi UK announced it would bring all of its local brewing operations under one roof at Fuller’s Griffin Brewery in Chiswick, west London.
It has subsequently shifted production of Meantime and Dark Star beers to the site, closing its Greenwich brewery in the process.
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