FOSTER’S SELLING ASSETS LIKE HOT POTATOES

It seems like Foster’s has been a little vendor happy these days. In the past month, Foster’s has relinquished its European brands and Chinese assets to Scottish & Newcastle and Japan’s Suntory Ltd.et, and now they’re selling wineries. What gives?

Apparently the international grape glut has a lot to do with it.

"It was inevitable with the pressures in the industry right through from grape growing to retail that you've got to undertake cost-cutting to stay relevant, so I don't think we can knock it," said Rob Paterson, managing director of major Foster's shareholder Argo Investments.

The company plans to sell one French (Domaine La Motte) and two Australian wineries (Rosemount Denman and Seppeltsfield), along with some packaging facilities as a way to consolidate wine-making at regional areas.

According to Foster’s, the planned sales are a part of a consolidation of Southcorp and Beringer Blass Wine Estates.

"The sale of these facilities will allow us to consolidate wine-making at our most technologically-advanced, flexible and efficient facilities," Foster's Wine Estates managing director Jamie Odell said.

Foster’s will retain associated brands, such as Penfolds premium red wines, but will lose the Seppeltsfield fortified brands and possibly the James Herrick brand.

“We are committed to growing the famous Penfolds, Rosemount, and Seppelt labels from truly world class facilities,” said Jamie.