Foster's has seen its profit forecast cut. Broker ABN Amro has reduced its earlier profit estimate for the Australian brewer for 2003-2004 from A$558m to A$549m.

The broker believes that the under-performance of Foster's Beringer Blass wine business in the US will hit the group's profits. Following a wine glut in California during the September quarter of this year, and a strike in supermarkets that are supplied by Beringer, the wine company saw shipments fall by 18.5%.

ABN Amro also believes that volumes for North American wine will fall by 8% in the first half of 2004.