Pernod Ricard’s acceptance of a cut-price deal to offload its Lindauer wine brand serves as a warning to Foster’s Group, according to a report.

Pernod said yesterday (18 October) that it had agreed to sell New Zealand wine Lindauer and several other minor brands to Lion Nathan and Indevin for a total NZD88m (US$66m).

According to a report in today’s The Australian newspaper, the sale price was equivalent to 4.5 times Pernod’s expected earnings from the assets. It argued that this boded ill for Foster’s Group, which recently rejected an offer at more than twice that value for its Treasury Wine Estates business.

Foster’s Group is committed to deleveraging its beer business, Carlton & United Breweries, from Treasury Wine Estates by the first half of 2011.

Takeover bids are expected for both divisions and Foster’s has let it be known that it is willing to consider offers that “maximise shareholder value”.

Subscribe to Just Drinks for just £1 for 1 month

Stay ahead with unbiased news, expert commentary, and in-depth features on global topics.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

As a trusted provider of data and insights, Just Drinks collaborates closely with industry leaders and professionals to offer unique thought leadership and analysis. Gain a deeper understanding of the drinks industry’s trajectory and the priorities shaping the profession.

What’s included in your subscription:
  • Personalized Access: Secure login to Just Drinks
  • Industry News & Expert Commentary: Timely updates and exclusive C-level interviews.
  • Case Studies & Deep Dives: Real-world applications and in-depth analyses.
  • Exclusive Subscriber Newsletter: Weekly top features, plus a new thematic report and webinar.

Ready to stay informed?

Subscribe to unlock exclusive content.

Already a subscriber? Sign in to access your account.

Pleasecomplete this form to request more information, and a representative will be in touch shortly.

Just Drinks Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Drinks Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving beverage industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now