AUS: Wine business sale still an option - Foster's CEO
Foster's Group may still look to sell its wine business, but the group has received no offers for either that or its more successful beer arm, CEO Ian Johnston has said.
Speaking about the business on ABC network's Inside Business show on Sunday (21 February), Johnston said that Foster's is "retaining all optionality" regarding the future of its troubled wine arm.
Analysts have long speculated that Foster's would like to demerge its wine business from beer and sell it off. Such a move would likely leave the firm's beer arm open to takeover bids.
The group is halfway through a sale of non-core wine assets, as part of a divisional review announced 12 months ago. At the time, Foster's chairman appeared to leave the door open for a sale: "The current difficult conditions in debt and equity markets mean this is not the appropriate time to sell or demerge Foster's wine business," he said.
Johnston told ABC at the weekend that the firm, which owns Rosemount and Wolf Blass wine brands, has received no interest from buyers.
"Has anybody approached us? No, nobody's approached us for either the wine or the beer business to be honest."
He did, however, make reference to the 5% stake in the group that has been acquired by Canada-based brewer Molson Coors. "We can only speculate as to what's behind those motivations," he told interviewer Alan Kohler.
To watch the ABC interview with Johnston, click here.
Molson Coors has detailed its next dividend payment....
- Coca-Cola pressure builds as bid rumours swirl
- Gin: Plymouth's from Plymouth, London's from...?
- Why Chinese beverages won't conquer the world
- Fireball Recall: Putting Out Fire with Anti-Freeze
- Comment - IPO Launch a Tonic for Fever-Tree
- Anheuser-Busch InBev cuts jobs in US shake-up
- Diageo targets Millenial women with Baileys push
- Pernod blames rule changes for Plymouth GI drop
- William Grant unveils bespoke Glenfiddich website
- Diageo unveils Ciroc in Times Square push
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global Beer Opportunities: Beyond Standard Lager
- The IWSR Global Trends Report 2014
- Global Cognac insights - market forecasts, product innovation and consumer trends research