What’s Next for Foster’s?

Now that Foster's has announced its intentions to demerge its beer and wine units, let the speculation begin. Once the demerger is complete, analysts agree that the beer unit won't stand along for long. For one, the beer industry has seen a lot of global consolidation in recent years. Analysts also say that the wine business has never quite worked for Foster's and distracted management from the more profitable beer business. And a consolidated beer and wine unit has largely hindered other brewers from making a play. But they will have their chance as early as June 2011. Foster's said in a statement yesterday that "no decision has been made on the structure or timing of a demerger," but it is "unlikely to be implemented until the first half of calendar 2011, at the earliest."

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