Foster’s to spin off 13 less profitable brands in joint venture
23 Oct 2009
Australia's Foster's Group says it plans to transfer 13 of its less profitable wine brands into a joint venture with Vok Beverages, which will comprise a key component of the restructuring of its wine unit.
Foster's which is the world's second-largest winemaker by sales first flagged the restructuring of its business in February after its failed attempt to sell it.
The company said it would sell off or close 37 of its more than 80 brands in order to focus on better-margin, better-known brands such as Penfolds, Lindemans and Rosemount.
According to David Dearie, managing director of Foster's wine unit in Australia and New Zealand, the move would substantially complete the rationalisation of the Australian wine brands announced as part of the wine strategic review outcomes in February.
With the joint venture Foster's would be able to focus on wine making, distribution and marketing of its core portfolio.
The brands that will be taken over by the joint venture are Queen Adelaide, Half Mile Creek, Minchinbury, Matthew Lang, Andrew Garrett, Maglieri of McLaren Vale, Rouge Homme, Great Western, Cartwheel, Fishers Circle, Galway Pipe, Boronia and Yarra Ridge.
