Foster's has announced a shift in its wine strategy, saying it will focus resources on promoting its best-selling wines, at the expense of lesser brands.

The company said more money would go behind the development of the brands Black Opal, Jamiesons Run, Yellowglen and Wolf Blass. Wines that do not meet sales expectations will be discontinued.

The decision to create a selection of core brands mirrors the strategy of the world's largest spirits companies and is designed to improve the global profile of Foster's best brands.

Foster's also suggested that there might be losses at Wine Planet if the drinks company is successful in its takeover of the wine retailer.

If successful in buying Wine Planet, Foster's plans to use it to support its A$400m offshore wine club business. It said it would dispose of the Wine Planet domestic business and would review the employment of present employees.

While it said some staff would be retained others would not be needed.

Meanwhile in Western Australia, winemaker Xanadu announced it was mulling a decision on whether it would tender a takeover bid for Normans Wines.

Xanadu said it had around $A20-$A30m to spend on acquisitions and with few prospects for growth in Western Australia is looking to merge with a company in New Zealand, Victoria or South Australia.