Woolworths denies beer war
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.