Lion Nathan to withdraw Castlemaine XXXX from UK market

10 June 2009

Australian brewer Lion Nathan is preparing to withdraw its Castlemaine XXXX Australian beer from the UK following its failure to find favour British palates, more accustomed to ale, stout and bitters.

Castlemaine XXXX beer was introduced in the UK market 25 years ago but will now make an exit at the end of the month.

The beer was being produced by InBev UK, which was licensed to produce the lager at its Samlesbury brewery in Lancashire in north west England. The licensing agreement expires on 30 June and will not be renewed as Lion Nathan says it will retire the brand on expiry of license on 30 June.

"The mainstream lager market in the UK is subject to challenging market conditions," the company said in a statement.

"Also, in an increasingly globalised world, Lion Nathan has taken the view that maintaining varied brand positioning in different markets is not in the best interests of the  brand."

The beer was first brewed in 1924 and marketed overseas with the slogan "Australians couldn't give a Castlemaine XXXX for anything else".

Though sold in the UK since 1984, the brand could never rival the popularity of its rival Foster's and has been sliding on a sales slump.