Foster vs Foster’s Battle Hits Australia Wine Goliath
Foster vs Foster’s Battle Hits Australia Wine Goliath
Jun 3, 2010 6
(Bloomberg) -- Adam Foster’s annual wine production of 2,500 cases is a fraction of the sales of Foster’s Group Ltd., the world’s second-largest producer. Yet it’s a factor in breaking up the rival he shares a name with. Foster’s Group, the Australian brewer that sells lager in 150 countries, spent A$7 billion ($5.9 billion) building its wine unit, acquiring such labels as Beringer of the Napa Valley. Wine earnings fell 53 percent in the six months through December on a grape glut, currency moves and competition from thousands of smaller rivals unencumbered by shareholder and analyst expectations.
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