Foster's Group

Foster's Group Limited
Subsidiary
Industry Beverages
Founded 1888
Headquarters Southbank, Melbourne, Australia
Key people
 Ari Mervis, Chief Executive Officer
Products Victoria Bitter
Foster's Lager
Revenue A$2.27 billion (2011)
Number of employees
 2,239 (2011)
Parent SABMiller
Website www.fosters.com.au

Foster's Group was an Australian beer group with interests in brewing and soft drinks. Foster's Group Limited was based in Melbourne, Victoria and was renamed Carlton & United Breweries prior to sale to British-South African multinational SABMiller. Foster's Group was the brewer of the Foster's Lager. Foster's wine business was split into a separate company, Treasury Wine Estates, in May 2011.

History

It was founded in Melbourne in 1888 by two American brothers William and Ralph Foster of New York, who happened to own a refrigeration plant. Cooling was necessary to brew and store acceptable lagers in Australia's hot climate, unlike the English-style dark ales commonly brewed at the time. They sold the brewery the following year and returned to the United States.

In 1983 Elders IXL, a giant Australian diversified conglomerate, purchased Carlton and United Breweries, and renamed it Elders Brewing Group. Then in 1990, the Elders Brewing Group changed its name to the Foster's Group, to reflect the name of their most internationally recognised product.

In 2005, Foster's Group acquired the Australian wine-making group Southcorp. This acquisition added famous brands such as Penfolds, Lindemans and Rosemount to the Foster's stable and around A$1 billion to revenues.

Foster's Group was acquired by SABMiller plc in December 2011

In May 2011, Foster's Group's Treasury Wine Estates unit was spun off into a separate company. The first day of trading saw its share price soaring, valuing the separate entity at A$2.2 billion.[1]

There had long been speculation that the beer sector or all of Foster's Group will be subject to a takeover by a larger firm. Groups to express such an interest over the years have included Diageo, SABMiller, Molson Coors and Heineken International. In September 2011, the board of Fosters agreed to a takeover bid by SABMiller, valuing the company at A$9.9bn (US$10.2bn; £6.5bn).[2] Foster's Group Limited shares (ASX code: FGL) were suspended from trading on the ASX on 2 December 2011 and delisted from the ASX at close of trading on 20 December 2011.[3]

Business

In 1990, Asahi Breweries acquired a 19.9% stake in Australian brewery giant Elders IXL which later became Foster' s Group.

Foster's Group imports, licenses, and distributes a large number of brands. In Australia, Foster's distributes the Cinzano, Perrier, Skyy vodka, Stella Artois, and 42 Below import brands among many others. While in the United States and Canadian markets, Molson brews and sells Foster's Lager under license.

In August 2008, it was convicted and fined more than $1-million for two breaches of Victoria's Occupational Health and Safety Act which led to the death of a worker in 2006.[4] The prosecution of the company by the Director of Public Prosecutions for WorkSafe Victoria resulted in a call for the company to better report on health and safety in its Annual Report.[5]

CEO Trevor O'Hoy, resigned on 10 June 2008 after poor performance by the wine division of the group.[6] O'Hoy was replaced by Ian Johnston on 21 July 2008 in the position of acting CEO.[7]

Foster's announced yearly results which ended on 30 June 2009. The net sales revenue increases by 2.7% to $4.5 billion. Net profit increases by 4.0% to $741.5m and earnings per share increases by 4.6% to 38.5 cents.

In 2011, Fosters made major losses that including a write down in the value of the wines division to AUD$1.8 billion[8] that at the business' AGM in Melbourne on 29 April 2011, 99% of Fosters Group shareholders agreed to split Fosters Group business into two separate brewing and wines companies. The wines business became Treasury Wine Estates, and was listed on the ASX on 10 May 2011.[9][10] In a late August 2011 interview the Carlton United Group (Fosters beer division) announced that they would be focusing more on craft beer to meet the change in taste of the Australian drinker.[11]

Beers and Breweries

Cider

Spirits

Non-Alcohol

See also

References

  1. ↑ "Treasury Wine Valued at $2.3 Billion After Spinoff From Foster's Group". Bloomberg. Retrieved 10 May 2012.
  2. ↑ "SABMiller agrees Foster's takeover deal". BBC News. 21 September 2011. Retrieved 21 September 2011.
  3. ↑ Investors, Foster's Group Limited (accessed 13 June 2012)
  4. ↑ Foster's fined $1.125m over worker's death Sarah-Jane Collins - 5 August 2008 - The Age.
  5. ↑ http://www.worksafe.vic.gov.au/wps/wcm/connect/WorkSafe/SiteTools/News/Fosters+gets+record+fine+for+fatal+safety+breachesI
  6. ↑ Takeovers rarely work for shareholders Michael West (10 June 2008) smh.com.au.
  7. ↑ ASX - Ian Johnston appointed acting CEO on departure of Trevor O'Hoy Melbourne, 21 July 2008 - Media Centre - Foster's Group Limited.
  8. ↑ "Foster's shareholders decide wine and beer don't mix". ABC News. 29 April 2011. Retrieved 29 April 2011.
  9. ↑ "Investors agree to split Foster's into beer, wine units". BBC News. 29 April 2011. Retrieved 29 April 2011.
  10. ↑ "Treasury Wine Estates debuts in market middle". The Australian. 10 May 2011. Retrieved 8 June 2011.
  11. ↑ PM. "New brew". Radio Programm Interview. ABC Radio National (Australia). Retrieved 27 August 2011.

External links

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