The boss of Foster's Carlton & United Beverages division has said that the cost cutting programme at the company is on target.

Foster's CEO Trevor O'Hoy had identified A$85m in annual costs the company hopes to save on over the next three to five years, part of a programme that is looking to combat a lack of growth in mainstream beer consumption in Australia.

"These savings that Trevor talked about last year will be delivered - we're on track," CUB managing director John Murphy was quoted saying by Dow Jones today (15 November).

Talking with analysts at a corporate briefing, he added: "There are some things in there that won't be delivered, there will be areas in there that we didn't have in the review."

But "the overall cents and numbers will be delivered, so we're feeling very comfortable," he concluded.