Fosters to launch new citrus lager in pubs

Scottish & Newcastle has announced plans to launch a new citrus Fosters on the market just days after buying the brand in Europe.

The new lager, branded Foster's Twist, is brewed with citrus hops for a subtle hint of lime, sold in a twisted-cut glass bottle designed to be served ice cold.

Backed by a multi-million pound marketing campaign, including extensive television advertising, Foster's Twist will be launched into the UK in summer immediately after the World Cup.

The Edinburgh-based company, one of Europe's largest brewers, paid £309m to Melbourne-based Foster's Group for the Foster's trademark throughout Europe, the Russian Federation and Turkey.

Foster's is the third-largest lager brand in Britain, and one of the top ten in Europe.

Tony Froggatt, Scottish & Newcastle chief executive, told analysts that buying the trademark outright meant that S&N would not have to continue royalty payments to Foster's Group, and new product development could be speeded up without reference to Melbourne.

Foster's Twist is the first new development of the brand for more than a decade, and the first UK-led new product development under S&N ownership.

"Under the licence, we were forced to have their approval if there were any changes in the brand or technology or a move to a new brewery. That now all gets swept away, and we will have much more flexibility and speed to drive new ideas and concepts," said Froggatt.