The Swiss hotels and restaurants group, Moevenpick, has said that it is to scrap plans to sell its wine operations.

The company said last year that it was planning to sell the wine business which comprises a distribution arm, which sells wine to restaurants and bars in Switzerland and Germany, a chain of wine bars under the banner of Moevenpick Caveaux and a string of retail outlets.

Moevenpick's wines sales stood at SF138m in 2001. At one stage, it had been suggested that the Australian beer and wine concern, Foster's Group, was interested in buying the Swiss company's wine operations.