By Andrew Starke
Australia’s liquor industry, media and perhaps more than a few global brewers will be keeping a close eye on what transpires at the Foster’s Group’s half year financial results to be revealed in Melbourne tomorrow (Feb 15).
Aside from declaring the company’s financial results for the six months to December 31 2010, Foster’s Group chairman David Crawford and CEO Ian Johnston are expected to reveal the ‘nuts and bolts’ of the proposed demerger of beer and wine operations.
It has been widely anticipated that sluggish mainstream beer sales and discounting in the ultra-competitive wine sector will impact on the group’s profits but for many analysts the demerger details are paramount.
While media reports over the weekend have speculated that Foster’s may delay the demerger, the decisive movement behind the scenes may well turn out to be from global brewers manoeuvring to acquire Foster’s beer business.
SABMiller, Molson Coors, Asahi and Coca-Cola Amatil have repeatedly been linked with a bid for CUB.
Foster’s Group shares were trading at $5.76 at 3pm today (Feb 14), slightly down from seven days ago.