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Heineken cuts strength of Foster’s lager as duty rises and sales slump

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Heineken cuts strength of Foster’s lager as duty rises and sales slump



Heineken UK is cutting the strength of its Foster’s lager to take advantage of duty savings on weaker beers.

The brewer said dropping the lager’s strength from 3.7% to 3.4% would allow customers to “benefit from more competitive pricing as inflationary pressures continue to affect the wider market”.

It added: “This follows the introduction of differential duty rates by the UK government, which encourage brewers to innovate at lower ABV (alcohol by volume) rates in support of customers wanting to moderate their alcohol consumption.”

The change, which takes effect from February, would also support pubs and retailers with a “competitively priced classic lager”, it said.

Foster’s ABV was previously lowered from 4% to 3.7% in January 2023.

Heineken UK said: “The decision to adjust the ABV of Foster’s reflects our commitment to helping consumers make responsible choices, while supporting pubs and retailers with a competitively priced classic lager alongside a portfolio of brands across the price and ABV spectrum.

“Our master brewers have spent many months refining the recipe to ensure the taste remains unmistakably Foster’s – crisp, balanced, and refreshing.”

Off-trade sales of Foster’s fell by 13.7% to £252.8 million in the year to April, according to NIQ data.

A number of products have been reformulated since the introduction of new duty savings on beers with an ABV of 3.4% or below in August 2023, including Carlsberg Pilsner, Coors Light and Grolsch.



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AI could make humans less intelligent, warns Royal Observatory

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AI could make humans less intelligent, warns Royal Observatory



Paddy Rodgers said the Observatory’s rich history showed the power of human knowledge and the need to avoid “dependence” on AI.



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Why does Amazon have no Western rivals?

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Why does Amazon have no Western rivals?


First, to be sure, Amazon isn’t without competitors in any of the segments it is in, including e-commerce. Major US retailers like Walmart and Target both have broad-based, rapidly-expanding online retail arms, and offer their own versions of Amazon’s Prime subscription service.



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Weather & then war lead to tears in India’s onion basket

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Weather & then war lead to tears in India’s onion basket


Seeking relief: Onion growers want an MSP of Rs 3,500/quintal and a Rs 1,500-a-quintal compensation for distress sales

Rain clouds rolled over Maharashtra’s onion belt. Then came war winds from West Asia. Prices collapsed. Crops rotted. Farmers counted losses in rupees — and sold tears by the quintal. Across Nashik, Solapur and Chhatrapati Sambhajinagar, onion growers are reaping a bitter harvest this season as wholesale prices at agriculture produce market committees (APMCs) have crashed far below production costs.Prakash Galadhar, a farmer hailing from Paithan taluka in Chhatrapati Sambhajinagar, hauled 1,262kg of onions he had harvested to market last week. After deductions for labour, loading and transport, his final balance showed he owed the trader Re 1.In Satana APMC of Nashik district, farmer Jitendra Solanke brought 30 quintals hoping to recover at least part of his investment. Traders first offered Rs 50 a quintal. After he protested, rate climbed to Rs 175 a quintal — Rs 1.75 a kg.Still, numbers refused to add up. “I spent Rs 1,200 per quintal to grow crop. After sale, labour and transport charges, only Rs 500 remained. The loss mounted to Rs 36,000,” Solanke said.Inputs have become expensive — seeds, fertilisers, diesel, mechanised farming and labour costs have all risen sharply — while market prices have sunk into mud.“We sell onions at Rs 4 to Rs 5 per kg while production cost is over Rs 12,” said Bhausaheb Jagtap, a farmer from Pune district. “After paying everybody, nothing is left,” Jagtap said.Prices have been sliding since Feb this year. At Lasalgaon APMC in Nashik — country’s largest onion wholesale market and benchmark for national rates — the kitchen staple is currently selling between Rs 400 and Rs 1,600 a quintal. Nearly 80% of arrivals fetch less than Rs 800 a quintal.In Solapur APMC, arrivals on May 13 touched 14,756 quintals. Prices ranged from Rs 100 to Rs 1,700 a quintal, or Rs 1 to Rs 17 a kg. A year ago, onions sold there for Rs 2,500 to Rs 3,000 a quintal.Growers said break-even price stands near Rs 18 a kg. “Losses are massive because nearly 80% of onions are selling between Rs 400 and Rs 800 per quintal,” said Bharat Dighole, president of Maharashtra Onion Growers’ Association.Market experts blamed a perfect storm: bumper arrivals, weak domestic demand, export disruptions and rain-damaged produce flooding mandis.“Geopolitical tensions involving Iran, US and Israel disrupted export markets and reduced overseas demand,” said Vikas Singh, vice president of Horticulture Produce Exporters’ Association of India.Unseasonal rain between March 19 and 21 added another blow to the farmers. Showers lashed Nashik district just as summer onion harvest began, damaging ready crop and triggering rot during storage. “Only 30% of produce was grade-1 quality,” said Prakash Jadhav, head of onion department at Solapur APMC. “Rain damage and long storage hurt quality.”Farmers are demanding onions be brought under minimum support price, pegging at Rs 3,500 a quintal. Growers’ groups want Maharashtra govt to compensate farmers by Rs 1,500 a quintal for distress sales.(Inputs from Prasad Joshi)



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