Steinlager Pure is to be sold in Britain, with Lion Nathan stablemate XXXX being withdrawn.
The Australian beer, sold there for 25 years, will be "retired" after facing stiff competition in a crowded mainstream beer market where it was making only modest returns.
"The mainstream lager market in the UK is subject to challenging conditions and the profit pool available was insufficient to justify continued distribution of the brand," said Lion Nathan spokesman James Tait.
"The financial implications of this decision are insignificant."
Lion Nathan said it would focus on premium brands to improve margins. The Steinlager Pure decision follows a push into Hawaii and the mainland United States.
It is understood XXXX held just 1 per cent of the market in Britain.
Steinlager Pure heads UK push
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