AUS: Foster's looking to sell Asian brewing ops

By | 13 March 2006

Foster's Group is looking to sell its brewing assets in four key markets - with SABMiller one of a number of potential suitors for the operations, just-drinks understands.

Foster's Brewing International, the company's overseas beer arm, has put its businesses in China, India, Vietnam and Fiji on the block.

SABMiller has declared its interest in acquiring Foster's assets in these markets, just-drinks understands, but is not the only global brewer in the running. The sale process is understood to still be at an early stage with a conclusion still some way off.

SABMiller is understood to be attracted to Foster's operations in India, where it has been present since 1998 with a brewery in Maharashtra. The Foster's brand has also been the only international beer brand to achieve notable growth in India, with sales up 20% last year.

Foster's has a minor foothold in China but enjoys a significant presence in Vietnam, which has become the world's second fastest-growing beer market and where brewers Carlsberg, SABMiller and Anheuser-Busch have entered over the last two years.

SABMiller refused to comment on whether it was interested in bidding for Foster's Asian brewing assets. Scottish & Newcastle, which holds the European licence to the Foster's brand and has a 37.5% stake in India's largest brewer United Breweries, also declined to comment.

A Foster's spokesman said it was policy not to comment on market speculation, before adding: "All the Asian and Pacific breweries are performing strongly and Foster's is one of the fastest growing premium beer brands in these markets. We are commited to Asia as a major growth market for Foster's lager."

Sectors: Beer & cider

Companies: SABMiller, Foster’s, Carlsberg, Anheuser, United Breweries

View next/previous articles

Currently reading -

AUS: Foster's looking to sell Asian brewing ops

There are currently no comments on this article

Be the first to comment on this article

Related articles

AUS: Foster's the buyer to be bought? Report

In spite of trying to buy up Southcorp, Foster's could itself be a takeover target in the near future, according to press reports.

SWEDEN: Carlsberg to launch summer beer

Carlsberg Sverige is looking to introduce a lemon-flavoured beer to the Swedish market.

US: Legg Mason cuts Anheuser rating

Equity analyst Legg Mason has downgraded its rating of the US brewer Anheuser-Busch from "hold" to "sell" after the company issued a statement saying it expected sales below previous estimates.

Read more on this hot issue

Foster's Asia Talk

Lacking the capital to expand as it would like, Foster’s Group seems set to sell its Asian brewing operations and seek partners to brew the Foster's brand under licence.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page