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Will the proposed Fosters Beer demerger see one of Australia’s leading iconic brands end up being foreign controlled?
John and Tom Elliott reluctantly concede Fosters is a logical target for the large overseas brewers.
John(Fosters/Elders IXL CEO from 1984 to 1990) and Tom Elliott assess where Fosters went wrong over the last 15 years.In 1994 Fosters was the fourth largest international brewer but now is a poor performing beer and wine conglomerate and fast losing market share on their top beer brands .By 2010 Fosters have eroded around a $5billion of shareholder value primarily due to aggressive and ill timed wine takeovers since 1995 A so called growth strategy that went wrong.
It will be a sad day for all Australian beer drinkers and residents when the inevitable control of Fosters passes to new Northern Hemisphere owners .
Ironically, if Asahi the large Japanese brewer buys Fosters then 90% of all Australian beer brands will be controlled by the Japanese following Kirins (the other Japanese brewer) recent takeover of Lion Nathans Australian beer ,wine and spirits business for$US3.67billion(.Fosters stand alone value post de-merger is around a $9 to 10 billion’)
Something our beer drinking forefathers would never have predicted 60 years ago.
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John
It is an absolute disgrace what has happened to Fosters and the fact that there is no doubt they will shortly be foreign owned. It is also a slap in the face to all Australians who have supported them and made them who they are today through their brand loyalty. It just goes to show you Fosters does not give a flying toss about their customers. It wont be an easy transition for the new owners, there will be a backlash from the Australian public!
John
I have been a Fosters ,Elders IXL shareholder since the 1980 s and I agree it will be a sad day if Fosters ownership moves overseas.
I enjoy the weekly Father/Son segment