In case you’ve been hiding under a rock today, Foster’s has announced the demerger of its wine and beer businesses. Here, just-drinks gives you the deal at-a-glance.
- Foster’s will fully demerge its wine and beer arms, giving them separate executive boards and separate stock listings.
- The company does not expect to implement the move until early 2011.
- As for why, Foster’s CEO Ian Johnston said: “We are increasingly seeing the benefits of operationally separating the beer and wine businesses.” After appointing new management in both beer and wine, and having seen an improvement in the global economy, Foster’s thinks the time is right.
- The move has refreshed speculation that multinational brewers will chase Foster’s Australian beer operations. Johnston said today that the group has received “no approaches”.
- Foster’s faces a further AUD1bn (US$829.1m) non-cash charge on its wine assets in the current fiscal year, reflecting an anticipated re-evaluation of the assets during the demerger process.
- The group has sold 20 out of 32 non-core vineyards it put up for sale last year, representing around half of the total 5,000 hectares Foster’s hopes to divest across Australia and California.
- Foster’s expects an EBITS of around AUD1bn for the year to the end of June.
- It added that it is on-track to achieve cost savings of AUD100m per year from fiscal 2011.
Stay informed for just £1! *
Subscribe to Just Drinks for unbiased coverage of the global drinks industry, offering insights into the corporate strategies of beverage manufacturers and brands worldwide.
What’s included in your subscription:
- Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
- Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot beverages
- Unrivalled drinks industry comment from leading sector specialists
Ready to stay informed? Subscribe now and gain access to exclusive content.
Go deeper with GlobalData
Have a subscription? Sign in
For further details on subscribing, click here. Need multi-user access? Explore our corporate subscriptions now.
*After your 1-month trial, your subscription will continue at £315 per year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
