2. Fosters break-up
This one had been rumbling on for a while when the Foster’s board finally confirmed what we were all expecting – that it was demerging its wine and beer divisions.
Once shareholders approved the move speculation was immediately rife over potential bids for either side of the business.
All of the noise on this front has come on the beer side of things, with the brewer subjected to a hostile takeover bid from rival SABMiller before eventually the board agreed to the terms of the offer, which valued the company at AU$9.9 billion.
Shareholders in the Australian company were, however unhappy that the board was so ready to do business with SABMiller when it said it expected beer sales to pick up again once the economy improved, prompting outraged shareholders at the group’s annual meeting to label the board “disgraceful”.
The wine business, Treasury Wine Estates (TWE), has had a comparably quiet year on the takeover front since the split, though chief executive David Dearie has been busy behind the scenes reshaping the business and bringing in a new management team, chief among whom are five brand managing directors for its major labels of Wolf Blass, Penfolds, Lindemanns, Rosemount and Beringer.
Meanwhile TWE recently unveiled its new Fine Wine team with which it is hoping to push its fine wine credentials. Focusing on selling wines at £15+ from TWE’s portfolio, the team hopes to make use of wineries that have not previously had much exposure in the UK and also push Australia’s regional message.
