One of the UK's most popular lagers is about to become weaker, as its brewer moves to take advantage of tax breaks for lower-strength beers.
Foster's Strength Slashed in Tax and Health Play
Heineken UK has confirmed it will reduce the alcohol by volume (ABV) of its Foster's lager from 3.7% to 3.4%. The company stated the decision aligns with a growing consumer trend towards lower-alcohol alternatives and allows it to benefit from reduced duty rates for beers below 3.5% ABV.
A spokesperson for Heineken UK explained the rationale behind the change. "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," they said.
The brewer emphasised that its master brewers had spent months tweaking the recipe to maintain the brand's signature taste. "We have ensured the taste remains unmistakably Foster's - crisp, balanced and refreshing," the spokesperson added, noting the new version had undergone extensive consumer testing.
The Financial Driver Behind the Change
The move is financially significant due to the UK's alcohol duty structure. Currently, duty is set at £9.61 per litre of alcohol for beverages with an ABV between 1.3% and 3.4%. This rate jumps sharply to £21.01 per litre for drinks between 3.5% and 8.4% ABV.
This is not the first time Heineken has employed this strategy in 2025. Earlier this year, the company similarly reduced the ABV of its Mexican beer brand, Sol, to 3.4%.
Budget Announcement Adds Further Pressure
The change comes ahead of a scheduled increase in alcohol duty. In the November Budget, Chancellor Rachel Reeves confirmed that alcohol duty will rise in line with inflation on 1 February 2026.
Reeves stated the government had balanced representations from the industry with the duty's role in reducing alcohol-related harm. The rise will use the Retail Price Index measure of inflation, which stood at 4.5% in September.
For drinkers of Foster's, the iconic Australian-branded lager will soon contain less alcohol, a shift driven by a combination of taxation policy and evolving consumer habits.
