Foster's Wine Unit Sale Possible

Foster's Group, a global drinks company delivering a total portfolio of beer, wine, spirits, cider and non-alcohol beverages, could separate the company's beer and wine units in over 12 months, reported financial times.

The Australian group, which makes Beringer, Penfolds and Lindemans wines, stated before six months that the time was not appropriate for reshaping, as difficult conditions in debt and equity markets cut the option to sell or demerge its wine business. But now the company expects that the plans to focus on the most profitable units and dispose of wine brands may improve its operational performance.

The operational split could likely lead to a takeover of the company's entire beer business.

Speculations are that potential buyers could range from SABMiller, Japan's Asahi to Canada's Molson Coors, which acquired about 5% stake in Foster's last year.

Foster’s Wine Estates, the wine unit of Foster’s Group is based in Napa. Recently, the company's wine unit slashed 120 US jobs inorder to restructure the company's American operations.