Lion ends 32-year ATC partnership to pursue ‘fresh opportunities' aligned with 'evolving business strategy’

This morning, Lion Australia announced that it will be concluding its partnership with the Australian Turf Club after 32 years.

According to James Brindley, Managing Director of Lion Australia, the decision was made to open up space for partnerships that better reflect Lion’s current focuses.

“While Lion has enjoyed a long and successful relationship with the ATC, we believe it is time for us to pursue fresh opportunities that align with our evolving business strategy and vision for the future,” he said.

“Throughout our partnership, we’ve been proud to support the ATC and engage with its vibrant community of racing fans. The experiences and memories created over the years will always be valued, and we wish the ATC continued success in their future endeavours.”

James Squire is currently the Exclusive Beer and Cider Partner across all four ATC venues, and was the title sponsor of this year’s James Squire Golden Eagle, Australia’s second richest horse race.

The conclusion of the partnership has been announced just nine days after Hahn was announced as the naming rights partner for the Hahn Australian Cup and just seven days after Lion unveiled a new national campaign to support the launch of Heineken Silver, a 99% carb free beer with reduced bitterness.

Additionally, Hahn also recently partnered up with AFL player Buddy Franklin for the launch of Hahn Ultra Zero Carb and James Squire recently released a limited-edition brew in collaboration with Australian chef and food personality Adam Liaw.

Lion’s decision to conclude its partnership with the ATC is indicative of its renewed focus in better-for-you beer, a category it has played a large part in helping to both establish and normalise in Australia via its Ultra portfolio.

Explaining the new range, Sales Director Kerry Appathurai said Lion’s Ultra low carb range was crafted in response to changing consuming approaches to health and wellbeing across all age brackets.

“Australians really like beer and its role in culture but are looking for products that overcome these challenges and address the needs of today,” Lion Sales Director Kerry Appathurai told Drinks Trade.

“For 25-34 year olds especially, there is a focus on health and fitness with people looking for new solutions that complement their lifestyles. We are tapping into what people are buying. Low Carb options are growing much faster than the category, and we know there is a big opportunity to create an ultra zero carb segment and drive recruitment.”

Lion now has Ultra zero carb beers across Hahn, Tooheys, and XXXX, all of which are under 100 calories. Additionally, HAHN and XXXX are also available in a mid-strength option, a category which Kerry Appathurai says is also continuing to grow.

“When you overlay low carb, together these segments are the growth engines for the category,” she said.

Both Hahn and Heineken - the brands behind the most recent two activations - have registered significant growth over the past year and are well positioned to capitalise on the better-for-you trend following their recent zero carb releases, with Hahn being recognised as the Hottest Beer Brand in the2024 Drinks Trade Hottest Brands List.

Reflecting on the latest sports partnership, James Brindley said "Hahn is here to celebrate the on-field moments that forge lifelong bonds and become the stuff of legend in months and years to follow. We look forward to raising a Hahn with the players, coaches, and communities that bring this tournament to life each year.”

When asked about the importance of evolving the category, Kerry Appathurai said it is about "ensuring we are supporting the beers that people have loved for years" while innovating and launching beers that people will love tomorrow."

"In the past, many consumers grew up with their first drink being the beer that their dad drank or the beer that their grandfather drank, but consumers are making different choices now," Kerry Appathurai told Drinks Trade.

"What is important is ensuring we are supporting the beers that people have loved for years, and continue to love, and at the same time innovating and launching beers that people will love tomorrow and into the future, beverages that better meet today's needs. We need to evolve what Beer can mean to people as their lifestyles are also evolving."