Foster's delays decision on wine division |
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| Written by David Shrimpton | |
| Wednesday, 29 October 2008 | |
 Foster's Group has delayed until next year a decision on what to do with its ailing wine business.Chairman David Crawford told today's annual general meeting that the review would not be completed by the end of 2008 as planned, but would be extended into early 2009. It now expects to announce the results no later than mid-February. The review of the wine business was ordered in June 2008 after a profits warning from Foster's. Speculation was that the outcome could lead to the sale of some brands or vineyards. It could also lead to the wine division being listed on the stock market as a separate company. Crawford told shareholders: "I want to assure you that after over a decade of investment - and given significant uncertainty in global financial markets - your board is taking the appropriate time, care and consideration in agreeing the future strategy and structure for our substantial wine assets." He added that, given the current economic uncertainty, Fosters remained financially sound and was "well placed to compete effectively and robustly in increasingly competitive markets". Foster's wine brands include Rosemount and Penfolds and the business is worth some $3.2 billion US dollars. Related Articles
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