Foster's group to keep wine business
Following a review of its wine assets which started in June 2008, drinks giant Foster's is to retain its wine business but run it as a separate entity to its beer business. It's brands include Lindemans and Penfolds and though the wine business has been underperforming the review concluded there were opportunities to make substantial operational improvements.
36 vineyards in Australia and California covering 5,000ha (hectares) will be sold off and 37 low-end brands will be discontinued. Other changes include the closure of its Denman plant in the Hunter Valley - the orignal Rosemount winery.
The company said the planned changes will cost AUS$60m a year but will result in savings of over AUS$100m a year from 2010.