Foster’s transfers wine brands to joint venture
Foster’s today announced plans to transfer 13 Australian wine brands to a joint venture with Vok Beverages in line with their plans to overhaul their underperforming wine business.
Vok Beverages will assume responsibility for the marketing, sales and management of the brands from 1 December 2009. Foster’s will continue to produce wine for the joint
The brands to be transferred to the joint venture are Queen Adelaide, Half Mile Creek, Minchinbury, Matthew Lang, Andrew Garrett, Maglieri of McLaren Vale, Rouge Homme, Great Western, Cartwheel, Fishers Circle, Galway Pipe, Boronia and Yarra Ridge.
“This substantially completes the rationalisation of the Australian wine tail brands announced as part of the Wine Strategic Review outcomes in February,” David
Dearie, Managing Director of Wine Australia and New Zealand, advised. “This joint venture allows Foster’s to focus on wine making, distribution and marketing of its core portfolio.”
“The joint venture enables Vok Beverages to capture new opportunities for these brands as part of a smaller, more focussed offering.”
Foster’s will hold a 50% interest in the joint venture company and will adopt the equity method to account for the investment.
The formation of the joint venture is not expected to have a material impact on Foster’s, the company added.