AUS: Foster’s looks at portfolio cull – report
Foster's is mulling reducing its product offering by up to 20%, according to local reports.
The Australian company hopes the move will rejuvenate the business and ward off the risk of a takeover bid, the Australian Financial Review said today (11 October). The paper cited Foster's managing director for Australia, Asia and Pacific, Jamie Odell in the report.
"I would be disappointed if we didn't get it down by at least 10%," Odell told the paper, adding that a move towards 20% would be even better. "I do hold to the view of fewer, bigger, better."
Odell added that a review of the business should be finished in time for Christmas, with Foster's burgeoning wine portfolio expected to bear the brunt of the cuts. Following the company's purchase of Southcorp last year, Foster's now has a portfolio of around 50 brands.
Earlier this year, Foster's offloaded its brewing assets in India to SABMiller and sold its beer concerns in Vietnam to Asia Pacific Breweries.
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