Blog: Pinning a price on Foster's wine arm
Chris Mercer | 2 June 2010
Watching analysts attempt to put a price tag on Foster's wine business is a bit like watching a blindfolded drunkard play 'pin the tail on the donkey'.
And yes, I have seen one.
Foster's Group's decision to demerge is wine and beer businesses, announced last week, sparked initial speculation on a sell-off and then further chatter on the divisions' value.
A week later and the one thing we can conclude is that, for wine, no one is really sure what the value will be.
According to a report in the Australian newspaper yesterday (1 June), some analysts think that Foster's wine division is only worth AUD1.5bn, while others think the value is closer to AUD4bn.
A major sticking point is deciding on whether the wine business should be valued on earnings or on assets.
The other factor is that Foster's does not plan to demerge the businesses until the first half of calendar 2011, at the earliest.
The wine division's value could fluctuate depending on the progress of new distribution deals recently signed by Foster's in the key US market, and also on the group's progress in selling off non-core vineyards and brands.
There is also every chance that the wine business could be broken up in any takeover deal, with no single buyer willing to take on the whole portfolio.
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
- Wm Grant names Victor Jerez business director
- 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