Australia: Lion Nathan gives away A$1 million to increase sales of its flagship brand

Lion Nathan has given the go-ahead for a A$1 million-plus blockbuster advertisements for Toohey's New to match rival Foster's Big Ad and increase sales of its flagship brand, according to the Sydney Morning Herald of October 27. The job has been given to Saatchi & Saatchi .

Lion Nathan, which will report its full-year results on November 9, is under pressure to stop its market share of the stagnant full-strength beer category from falling any further.

While New is still the leading draught beer in NSW, its overall volumes on tap and in pack have declined by an average of 3 % in the year to September, according to ACNielsen figures. Its NSW share stands at 23 %. While sales of its main rival, VB, are also falling, Foster's is claiming sales volumes of Carlton on tap and in pack in NSW are growing at an average of 30 %.

Saatchi's ads series starred a fictitious character called Davo whose seemingly endless luck knew no bounds, and who is duly rewarded with a schooner of New at the end of the commercial.

But the ad bombed because the creative failed to deliver cut-through for the brand and consumers were left confused as to what it was trying to say. Sales of premium beers is about the only category that is growing.

Amy Lawrence, Lion Nathan spokeswoman said: "We are continuing to work with Saatchi on the brand and when we are ready to bring campaigns we will comment then."

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