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

Faith in fakes

One of the most fascinating stories in wine, fit to stand alongside the Judgement of Paris, is that of Rudy Kurniawan, a man who managed to fool friends, auction houses and experts into believing they were drinking some of the world’s most expensive wines.

Click for more »
Upcoming events

Polls

Is blended Scotch overshadowed by single malt in retailers?

  • Yes
  • No
  • Don't know

Facebook

Twitter