By James Atkinson
A 6 per cent drop in Foster's sales volumes last quarter can be partly attributed to management's preoccupation with the brewer's takeover by SABMiller, according to Macquarie Equities Research.
SABMiller yesterday announced Foster's volumes for the quarter ended December 31 were 6 per cent below the previous corresponding period.
While the volumes for Foster's were released on a pro forma basis only and were not included in SABMiller group or divisional results, Macquarie Equities Research said they nonetheless "must be of concern".
Macquarie said the decline was partly down to very weak consumer demand growth, and the ongoing adjustment by consumers to RTDs and ciders.
But they said the sales drop could also be attributed, "not unexpectedly, [to] the acquisition process taking Foster's management's eyes off the ball."
Macquarie said SABMiller's roll-out in Australia will follow the template that "worked so well with the Bavaria acquisition".
"There is not a lot to integrate, but it is more an issue of better understanding the Australian beer market and developing a long-term growth strategy," they said.
Macquarie said SABMiller will likely include a review of target synergies for the Foster's business in a detailed update to the market in March or April.
(JUST) “…an issue of better understanding the Australian beer market.” WTF!?
THAT’s the answer for a 6% YOY Qtrly sales drop? (That and ‘mgmt distracted by [SAB Miller] aquisition’)? Wow…
a) What could Fosters, a 125 year old AUS brand ‘better understand’ about selling in their own backyard? If you don’t know THAT market by now mate, you’re NEVER gonna ‘better understand’ it!
b) If I was ‘management’ in a recently acquired beer group that is (more than likely) top heavy w/management…the last thing I’d be is ‘distracted’. I’d be making goddamn SURE that YOY quarterlies were better not MUCH worse.
I predict fewer ‘distractions’ for Fosters management in the very near future! After the SAB Miller cost cutting hatchet squad gets done w/management in AUS they’ll have all the time in the world to ‘spend more time w/family and/or freshen that LinkedIn profile.
btw, SAB Miller, let’s talk about bringing (US) Fosters ‘home’ to NY for production v TX for your 125th anni 1888-2013: ADKBREWCO
AS A RETAILER I MAKE NO EFFORT IN SELLING THE FOSTERS PRODUCT,THEY HAVE LOST THE PLOT WITH THEIR PRICING VB STUBBS LANDING AT $42(WORKING MANS BEER),THE MAIN FOCUS FOR ME KNOW IS EUROPEAN BEERS THAT LAND FROM $26 TO $38 A CASE.
Agree. SabMiller..Fosters. Lost the plot. I just tapped a little known craft beer. From Melbourne. Thunder Road Brewing Company Full Steam Pale Lager and its now my best selling beer on tap. Out stripping Carlton Draught!
Service is unbelievable and quality terrific.
Sorry guys..the beer pubs are growing up and you need to also