Foster's Group is planning to invest in a purpose-built wine bottling and warehousing plant. The new facility, to be located adjacent to its Wolf Blass winery in South Australia, will be built at a cost of A$69m (US$49.48m).

The beer and wine group said that the plant will have an annual production capacity of 10m cases. The development forms part of a supply-chain efficiency drive being implemented after the Beringer Blass Wine operational review was completed in June.

Foster's said that the new plant will consolidate the majority of Beringer Blass' wine packaging in the Wolf Blass winery and reduce costs.

The company is seeking A$60m of cost savings across Beringer Blass by the year to June 2007, and A$85m by 2009 as a result of the review, Foster's added.