Holsten Fusion axed as it fails to spark reaction

By The PMA Team Holsten UK has "suspended" Holsten Fusion, the ready-to-drink mixture of 5% abv lager and fruit flavours it launched in 2001.

The brand was launched with a £2m marketing budget, but Holsten admitted it could not match the marketing spend behind rival brands.

The company claimed the rapidly-changing dynamics of the PPD market had resulted in a "gradual erosion" of the brand's market share.

Holsten Fusion was targeted at the highly-competitive 18 to 25-year-old market and attempted to straddle the lager and RTD markets.

"Fusion has suffered at the hands of newer, younger PPS and FAB brands that are supported by high levels of marketing," a company spokesman said.

"Holsten UK has taken the decision to suspend Holsten Fusion while further consumer research is undertaken into the brand proposition with a view to a selected relaunch in 2004."

Andrew Edge, marketing director at Holsten UK, added: "We aim to revisit the brand proposition and product packaging before moving Holsten Fusion forwards again."

AC Neilsen spokesman Grah-am Page said: "It was a brave try by Holsten, but I'm not entirely surprised that Fusion has not made the grade.

It would have needed a £10m to £20m marketing budget to really hammer the consumer ­ the level of competition is intense."

Page credits Holsten with virtually starting the premium-packaged lager sector.

"Everybody has piled into the sector ­ although Holsten still holds a substantial chunk of this market," he added.

The withdrawal of Holsten Fusion follows the decision by Diageo to withdraw Gordon's Edge two months ago because of overcrowding in the market.

Meanwhile, Holsten UK is reinforcing its commitment to importing premium German beers with the launch of König Pilsener, a premium continental lager.

Available in both draught and packaged format, König Pilsener is a genuine import.