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.




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Looking back to look forward

Wine is a liquid time capsule. Drinking older vintages not only recalls the weather conditions and winemaking styles of the past, it encourages us to reflect upon our own histories. Such reminiscence often inclines towards romanticised nostalgia. Especially after the second bottle. But looking back is a great way of learning about the future.

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