Foster's to look overseas for growth

The West Australian August 23, 2011, 1:42 pm
Foster s to look overseas for growth

The West Australian ©

Brewer Foster's Group wants to boost its international beer business as the Australian domestic beer market continues to decline.

Foster's chief executive John Pollaers said he wouldn't call it a move to "Fosterise the world", but Foster's premium beer brands could be represented in more than the 45 countries that comprise Foster's current international market.

"I think that the international beer business is well under scale for the strength of our portfolio," Mr Pollaers told reporters.

"In most developed markets, the international premium import segment is in the order of 10-plus per cent.

"We're just not playing in that category to any scale or with any level of determination at this point in international markets."

Mr Pollaers said Foster's could do more in its 45 existing markets overseas, but there was also room to expand elsewhere given that other international brewers had distribution of their products in around 120 countries.

Foster's split its beer and wine operations in May, the wine operations into a separately listed company, Treasury Wine Estates. Foster's retained the beer, cider and spirits operations.

Mr Pollaers said the old Foster's had suffered a decade of distraction by wine, and the international beer business had lacked focus.

"By getting in there and claiming our rightful share of it (international beer), we see that as certainly adding good growth to the bottom line," Mr Pollaers said.

"The (Foster's) business is still (centred) around the Australian business, but this will certainly enhance our growth."

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