Stella Artois may be brewed in NZ

By DITA DE BONI

Lion Nathan may be poised to announce that it will brew premium imported lager Stella Artois in New Zealand.

The company is expected to break the news at a tasting session and lunch for media and other industry figures next Wednesday.

Interbrew, Belgium's biggest brewery and maker of Stella Artois, will have two senior officials at the lunch.

Lion Breweries would not confirm yesterday that it intended to brew the lager in New Zealand, but spokesman Graham Seatter said the company was considering the issue and would make an announcement soon.

"We have always said that when a certain volume is reached we would consider [brewing the beer in New Zealand]," he said.

It is thought the move to bring Stella Artois production to Lion's Newmarket brewing operation follows a move by DB Breweries in 1994 to bring Heineken production closer to home.

Heineken had been imported from Amsterdam. Stella Artois comes now from Belgium.

Stella has also been a successful player in Lion's portfolio, the brewer selling six million bottles in the 12 months to last November.

In the recent quarter sales increased 90 per cent on the same period last year.

Stella is priced at a premium and sells at lower volumes than competitor Heineken, but is one of the fastest growing premium beers in the liquor retail market.

Lion Breweries said yesterday that it would reduce the size of beer cans across all brands - from 355ml to 330ml - in June. The change is a response to a 17 per cent canned-beer sales decline over the past five years, leading to an increase in production costs per can.

But the smaller can will cost the same.