AUS: Drinks industry suitors eye Foster's sale
Some of the drinks industry's biggest names are thought to be eyeing Australian group Foster's, just-drinks understands.
Speculation grew today (26 September) that Foster's, which today announced Ian Johnston as its new CEO, could be broken up, following a strategic review of its troubled wine business.
One industry source told just-drinks today that a de-merger of Foster's' beer and wine divisions looked likely. "They pretty much hoisted the 'for sale' flag over the business by announcing a strategic review [of the wine business]."
The source said that there would be "a large number of people in the industry" interested in the Foster's beer division.
Fresh rumours of a sale have surfaced after the Bloomberg newswire reported last night that investment group Deutsche Bank had purchased shares in Foster's, reportedly on the behalf of a client.
Foster's net profit after one-off charges plunged 88% to A$111.7m (US$92.4m) for the 12 months to the end of June, following a $602m write-down on the group's global wine business. Chairman David Crawford has been leading a review of the division since June.
Just-drinks understands from a separate industry source that Foster's has already made an initial approach to at least one major drinks company about the potential sale of its wine business. Many in the market remain cautious about taking on the struggling division, however.
Foster's expanded its wine business in 2005 with the acquisition of Australian wine group Southcorp for A$3.2bn.
The controversial Australian 'alcopops' tax has been defeated by the country's Senate this week. Michelle Russell looks at the fallout....
SABMiller-owned Czech brewer Plzenský Prazdroj has announced plans to cut around 6% of its work force, following a review of the business....
SABMiller has taken full control of its joint-venture in Vietnam....
The top ten stories published on just-drinks this week:...
The Distilled Spirits Industry Council of Australia (DSICA) has followed Foster's Group in pledging to donate any tax refunds they receive in the country to DrinkWise Australia....
Australia's Foster's Group has said it intends to donate its refund from the country's collapsed RTD tax hike to alcohol and health initiatives....
Heineken is to take its 'The Most Interesting Man in the World' (MIM) marketing campaign for the Dos Equis beer brand to a national level in the US....
Heineken plans to lower the abv of the former Scottish & Newcastle white cider brand White Lightning in the UK....
- Comment - Diageo Steps Up Defence of Haig Club
- Focus - Diageo's H1 Results by Region, Brand
- Comment - Spirits - Where Next for Scotch Whisky?
- just the Preview - Diageo Q2 & H1
- US spirits pricing went "a little high" - Diageo
- Belvedere vodka tie-up over new James Bond film
- ASA rejects Haig Club ad complaints
- Diageo H1 sales flatline as Q2 improves
- Carlsberg freezes Russia salaries, new hires
- Diageo speaks out over supplier contract changes
- Global RTD/RTS insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Edrington Group in Spirits (World)
- Global Consumer Trends and Key Consumer Targets in Alcoholic Beverages
- Global vodka insights - market forecasts, product innovation and consumer trends research