Foster's renames its wine group
- Wednesday 21 July 2010
The rebranded company includes 12,000ha of vineyards, 20 wineries and 50 wine brands, including Penfolds, Lindemans, Rosemount, Wolf Blass and Beringer.
Foster’s CEO Ian Johnston said the renaming would accelerate a cultural change and business transformation that began with the company’s Wine Strategic Review 18 months ago.
‘The announcement today does not pre-empt any outcome for our demerger, nor does it represent fundamental change in our business model,’ he emphasised.
Foster’s announced in May that it would separate its wine and beer businesses over the next 12 months, sounding the death knell for the company’s previous multi-beverage strategy.
More than AUS$1bn was wiped off the value of its wine business in the 2010 fiscal year, after it was hard-hit by the economic downturn, oversupply and foreign exchange movements.
Industry observers have reported that, while potential bidders have been circling Foster’s beer business, interest in acquiring its wine division has been lukewarm so far.