Wool­worths de­nies beer war

Townsville Bulletin - - News -

RE­TAILER Wool­worths Ltd has re­jected claims that it is de­lib­er­ately sell­ing beer at be­low-cost prices in a beer war with ri­val re­tailer Coles. Coles and Wool­worths con­trol around 50 per cent of liquor dis­tri­bu­tion in Aus­tralia. Aus­tralia’s big­gest brewer, Fos­ter’s Group Ltd, stopped beer ship­ments to Coles and Wool­worths for a few days this month, claim­ing that the two ma­jor re­tail­ers were sell­ing the prod­uct at be­low cost. Carl­ton & United Brew­eries ( CUB), Fos­ter’s beer divi­sion, said the brand im­age of the beer, in­clud­ing VB, would be dam­aged if it were sold at $ 28 per car­ton, which Fos­ter’s be­lieved that Coles had been pre­par­ing to do.

VB is the largest-sell­ing beer brand in Aus­tralia. A spokesman for Wool­worths re­jected any sug­ges­tion that Wool­worths was en­gaged in a beer war with Coles.

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