Lion Nathan challenges Foster's with doubled adspend

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Lion will concentrate on its core brands, Tooheys in New South Wales, XXXX in Queensland, West End in South Australia and Emu Export in Western Australia, all handled by John Singleton Advertising. Lion's other main rostered agencies, Clemenger BBDO and Saatchi & Saatchi, are less affected by the change.

Tooheys will quit major sponsorship of the international Bathurst 1000 annual motor race and the NSW rugby league team, its two biggest commitments, as well as some smaller events.

"We feel above-the-line advertising is best for us," says Bruce Mansfield, business development director. "It wasn't the cost of sponsoring some events, but the amount of funds that went into supporting the events that made us decide against it."

Mansfield says Lion's aim is to establish a price premium for core brands, as well as others such as Hahn Ice and Hahn Premium, handled by Clemenger, and mid and low strength beers handled by Saatchi.

Copyright March 1997, Crain Communications Inc.

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