Foster's wine division struggles

17 February, 2010

Fosterís has reported a fall in wine sales in all of its regions, with net sales revenue in Europe, the Middle East and Africa declining by 76%.

Its net profits in the last six months of 2009 fell by 13.5%, a result blamed on an underperforming wine division blighted by recession and difficulties with currencies.

A year ago Fosterís took the decision to separate its beer and wine divisions, after exploring the possibility of a fully-fledged demerger. Chief executive Ian Johnston said all options remained open, though analysts expect Fosterís would still struggle to find a buyer for its wine operations at a price shareholders would accept.

In the UK Fosterís leading wine brand is Lindemans, which saw a 14% sales increase in the off-trade in 2009 and was the sectorís fourth best selling wine. Wolf Blass had a more difficult year, with sales falling 24%, according to Nielsen data.




Bookmark this


Site Search

COMMENT

What makes wine special

Reaching the 50th instalment of Hemmingís Way is hardly the biggest milestone, but I donít need much of an excuse to pour myself a glass of champagne before getting dressed. Itís a better reason than I had for all 49 other instalments, anyway. Not that that stopped me.

Click for more »
Upcoming events

Polls

Is blended Scotch overshadowed by single malt in retailers?

  • Yes
  • No
  • Don't know

Facebook

Twitter