Demerger of Foster's wine & beer divisions could mean U.S. manages
on 15/11/10 at 11:29 amIndustry
THE demerger of Foster’s wine and beer divisions could see the maker of famous labels, including Penfolds Grange, managed from the US.
Foster’s Treasury Wine Estates business is set to be split from the CUB beer division early next year, ending a 15-year experiment in mixing grape and grain that has cost more than $3 billion in asset writedowns.
At first glance, TWE would seem to be a more Australian company than an American one — its has 11 wineries here pumping out 72 million bottles of wine a year, compared with seven US wineries producing 20 million bottles.
But in a financial sense the weight is much more on the US side, with the Americas business (primarily the US and Canada) accounting for 49 per cent of net sales revenue and 49 per cent of earnings before interest and tax.