Blog: Foster's Millions
Chris Brook-Carter | 18 August 2003
Everyone but Foster's seems to be voicing an opinion and if the company's boss Ted Kunkel is following the press he will have been bombarded now by countless whys, wheres and hows.
The primary division in opinion though is whether to expand his wine empire or not. If not then the options reduce significantly and we may see the company invest in a share buyback, debt reduction or capital return to shareholders.
But frankly that all seems a bit dull. Quite apart from the selfish reasoning that debt reduction just doesn't make good editorial, I can't get my head round the idea that a company of Foster's international scale and ambition would go to all the trouble of selling off such a significant part of its business not to build a war chest for acquisitions.
And neither does the idea that wine does not represent a good investment cut much sway for me. Certainly the industry is under more pressure now than at any time in the last decade, but its long term potential still remains real. Wine is a long term business - a notion lost on investors and analysts all too often - prone to short term fluctuations in fortune. But I can't imagine too many of BRL Hardy's initial investors complaining about the ROI prospects of a well run wine business.
So just to add to the stream of predictions, my money is sitting on a US wine acquisition, perhaps Brown-Forman's wine division or Kendall-Jackson. The other option is Southcorp, but the Oatley family involvement makes any deal more complicate than either of the above, while the domestic market holds none of the potential of the US.
Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
Do you like whisk(e)y? And, I mean, really like whisk(e)y? Are you at a loose end in the first half of 2017? If so, then I've found just the job for you....
- Interview Berry Bros & Rudd CEO Dan Jago - Part I
- The threat of excess choice in beer is over-stated
- Key trends for the beer category in 2017 - Focus
- Key trends for the spirits sector in 2017 - Focus
- Signs of life in Japan's beer market - Comment
- Pernod Ricard's Method and Madness Irish whiskey
- Premium to counter mainstream in gin - research
- Bacardi lines up Canadian bottling plant closure
- Pernod unveils new St Patrick's Day Jameson bottle
- Diageo faces US$68m payout after SAP court loss
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global gin insights - market forecasts, product innovation and consumer trends