Fosters Group could be takenover

mkcoleman · Post by **mkcoleman** » Tue Aug 29, 2006 4:49 pm

Just read in the SMH business section the potential news that Fosters maybe acquired by one of two competitor breweries. Clearly this is only speculation at present however the gist of the story is as follows:-

InBev the world's largest brewery and SABMiller the next largest competitor rumoured to be considering a $11 billion plus takeover. Both companies have made no secret about their interest in the Asia-Pacific. SABMiller this month bought the Foster's name along with it's breweries in India, while Foster's is also off loading its Vietnam and Chinese business. Business anayalists predict that if the takeover comes from a beer brewer or even a private investor, it is likley that Foster's wine interests will be divested.
Cheers

MC

Ratcatcher · Post by **Ratcatcher** » Tue Aug 29, 2006 4:58 pm

I'm sick of it all. I wish all the corporates would all go broke and all their assets sold at fire sale prices to people who care about wine and the Govt legislate that no company can own more than 5 brands and produce wines from more than 2 separate regions.

I think I'm boycotting the big corporates. I'll still buy from the big family owned companies and the smaller producers but no matter how good their wines are I'm fed up with the corporates and what they have done to so many great labels. In 20 years Penfolds Grange could be a range of cheap sparklings.

Stuff 'em!

Maximus · Post by **Maximus** » Tue Aug 29, 2006 5:07 pm

Don't forget, wine is still a business. Despite how much many of us - including myself - hate the politics and secular nature of brawny wine corporates, for a lot of people wine is just another avenue to make money.

Shiraz_Freak · Post by **Shiraz_Freak** » Tue Aug 29, 2006 5:29 pm

If it's good i'll buy it if its crap i wont buy it again, simple really

Ratcatcher · Post by **Ratcatcher** » Wed Aug 30, 2006 9:29 am

I just hate the way they can buy 50 years of history then bastardise it for 3-4 years for a quick profit and then get their corporate bonuses, move on to the next multi-national before the $hit hits the fan and the history is lost or left in tatters.

That and beating their smaller competitors out of the market by running at a loss for 6-12 months just to run the others out of business.

I just hate 'em.

I am a left wing loony though!

n4sir · Post by **n4sir** » Wed Aug 30, 2006 9:42 am

This made for some interesting talk immediately before the Seppelt Fortified Masterclass last night.

One of the interested players could be Constellation in conjunction with another US brewery - the result would be the beer/wine aspects being totally split, the brewer getting the beer, Constellation the rest.

I thought the ACCC would surely step in as Constellation grabbing the wine division off Fosters would result in it having a huge share of the market. James Godfrey thought they would only have to divest a couple of things (such as Rosemount or Lindemans) for them to turn a blind eye.

Cheers,
Ian

bacchaebabe · Post by **bacchaebabe** » Wed Aug 30, 2006 12:36 pm

I'm with you Ratcatcher - I'm not happy Jan.

Ian, Did Godfrey say how much they thought Seppelts would sell for? I do wonder if a group of like minded investors couldn't get toegther and buy it and let Godfrey and the current management run it as they have been.

I for one would be happy to rustle up $100K. Just wondering exactly how many like minded people might be required.

The thought of that winery, more than any other in this country, being run into the ground or the stocks depleted in a firesale, really makes me want to put my money where my mouth is.

GraemeG · Post by **GraemeG** » Wed Aug 30, 2006 1:00 pm

bacchaebabe wrote:I'm with you Ratcatcher - I'm not happy Jan.

Another signed-up irritated consumer. But have we enough committed enthusiasts around the country to run the New Seppelt?

cheers,
Graeme

n4sir · Post by **n4sir** » Wed Aug 30, 2006 2:17 pm

bacchaebabe wrote:Ian, Did Godfrey say how much they thought Seppelts would sell for? I do wonder if a group of like minded investors couldn't get toegther and buy it and let Godfrey and the current management run it as they have been.

I for one would be happy to rustle up $100K. Just wondering exactly how many like minded people might be required.

The thought of that winery, more than any other in this country, being run into the ground or the stocks depleted in a firesale, really makes me want to put my money where my mouth is.

They were talking about the potential sale/split-up of Fosters group as a whole, and not specifically Seppeltsfield - I don't think anyone had the heart/nerve to bring that up with James at the time!

I think either TORB or Campbell mentioned a proposed $$$ figure in an article on one of their websites, but also said the real devil would be in the detail (ie. exactly what was included for the cash). The value of the wine stocks would be priceless, but if some were say tapped off for use in other Fosters products (such as Penfolds Great Grandfather, etc) prior to sale it mighn't be such a rosy deal.

If it's any indication, the fact that Penfolds no longer has access to a particular Seppeltsfield vineyard for the Cellar Door Grenache hints that Fosters may be trying hard to sell everything as a going concern and not strip any of it off. That's got to be a good thing, but given Foster's shaky past history it may also be wishful thinking.

Cheers,
Ian

Mike Hawkins · Post by **Mike Hawkins** » Thu Aug 31, 2006 7:36 am

Ian,

I'd be surprised if Constellation bought anything in the next year. They're highly geared after the Vincor acquisition.

Mike

TORB · Post by **TORB** » Thu Aug 31, 2006 9:13 am

Fosters are unloading assets (as we all know) to help the balance sheet and concentrate on their core business.

They have now officially denied the takeover rumour, but sometimes the takeover target is the last to know. :wink:

True Blue · Post by **True Blue** » Sat Sep 02, 2006 8:41 am

Am I mistaken in this but is the bloke who says there is no imminent takeover of his company also the same bloke who said that Fosters would be making no more major acquisitions, a few months before the Southcorp plunder?