Foster's set to separate wine and beer businesses

28 April, 2011

Fosterís demerger of its wine and beer businesses is expected to be rubber-stamped by shareholders tomorrow (Friday, April 29).

The deal will mean that Treasury Wine Estates Ė the division which owns brands such as Penfolds, Lindemans and Rosemount Ė will become a separate entity. It currently generates A$1.9 billion in sales revenue.

The beer operation, known as Carlton & United Breweries, is best known in the UK for Fosterís lager, although the rights to that brand are owned here by Heineken UK. Its annual sales are A$2.4 billion.

Shareholders meet in Melbourne at 9am and are expected to give the go-ahead to the deal, ending 15 years of the company operating as a combined beer and wine business.

If the vote goes as expected, the two companies will legally separate on May 10, each with its own shareholding structure.




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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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