By Ian Neubauer
Foster’s Group Chairman, David Crawford, has sent a letter to shareholders saying the company will fix its beleaguered wine business instead of selling it.
“We own a great company. The beer division is delivering consistently strong financial returns and, while financial returns from our wine assets are not acceptable, we own leading international brands with excellent potential,” he said.
“Our focus now is very clear — to consider all options to improve shareholder returns from wine and to exploit the growth potential of our leading portfolio of global brands.”
Foster’s began a board-ranging strategic review of its underperforming wine business in April.
On June 10 the company announced a revised earnings outlook for the 2008 fiscal year, a non-cash write down and the resignation of former CEO, Trevor O’Hoy.
Foster’s shares were trading at $4.91 at 3:00pm today (July 30).
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