AUS: Foster's Group calms wine sale decision talk
Foster's Group has calmed reports that it has dismissed the possibility of an outright sale of its wine business.
Australian newspapers yesterday (10 November) claimed that the troubled beer and wine company has ruled out a cash divestment of its wine operations due to the shaky economic climate, a lack of buyers and the belief that a current valuation of the wine side would be too low.
Speaking to just-drinks today, however, a spokesperson for Foster's said that the reports were "incorrect".
"There's no change in our position on the sale or otherwise of the wine business," the spokesperson said. "Every option - including selling the business for cash - remains on the table. The reports coming out of Australia that any options are off the table are incorrect."
In June, Foster's announced that its management had instituted a review of its global wine strategy and operations in April. "The company recognised that its performance has not met its - or shareholders' - expectations," chairman David Crawford said at the time. "Foster's also recognised and acknowledged problems with its execution of the Southcorp integration and that it paid too much to acquire wine assets."
The spokesperson confirmed today that this review should conclude in early 2009. "The results of this review will certainly be announced by the time of the release of our half-year results in mid-February," the spokesperson said.
When asked about last week's announcement by Molson Coors that it had bought a 5.3% stake in Foster's at the end of September, the spokesperson said that the company had been made aware of Molson Coors' move at the time, but that "for us, it doesn't change anything.
"We continue to focus on the business," he said.
The spokesperson also said that the two companies have not held any formal discussions. "As far as I know," the spokesperson continued, "the statement from Molson Coors that it had bought the stake is as far as any conversation has gone."
Corby Distilleries has appointed a replacement president and CEO....
Foster's Group has extended its PET offering for the Wolf Blass Green Label wine brand in its domestic market....
Pernod Ricard is set to announce that Lauren Simkin is the new general manager of its wine and Champagne business in the US, as part of a re-organisation of the division's sales team....
Molson Coors has seen net profits more than double in the first quarter of 2009, due to higher beer prices and cost savings initiatives....
MillerCoors, the US joint venture between Molson Coors and SABMiller, has reported a 50% rise in net profits for the first quarter of 2009....
Foster's is to increase its share in Foster's Group Pacific Ltd, after signing a deal to buy a 29% stake in the company currently held by Fijian Holdings Ltd for FJD$40m (US$18.2m)....
The European, Middle Eastern and African division of Foster's Group has signed up the Courtauld Commitment, an environmental initiative organised by the Waste & Resources Action Programme (WRAP) in th...
Cobra Beer chief executive Adrian McKeon has left his position as a sale of the brewer enters its final stages....
- Why Didn't Diageo Act Sooner on Mallya?
- just The Facts - The Global Wine Industry
- just On Call - Pernod shifts Scotch focus in China
- CCE head shines light on price talks
- Interview: Head brewer at Hall & Woodhouse
- A-B InBev "regrets" Bud Light bottle message
- Diageo teams Johnnie Walker up with Entourage
- Beam Suntory to strip down regional units
- MEPs call for calorie, ingredient facts on alcohol
- Bacardi opens Dewar’s Travel Retail whisky store
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research