Foster's Group

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See also: FGL for realtime information.

Foster’s Group Limited (Foster’s), a global drinks company, is engaged in marketing, production and entire supply chain of alcoholic beverages. Company has ownership of international portfolio of beer, wine, spirits, cider and non-alcoholic brands and it markets and distributes them in more than 155 countries.

Fosters has expertise in producing and marketing three major products under following brand names:-

Wine :- Beringer, Lindemans, Wolf Blass, Penfolds, Rosemount, Matua Valley, Wynns Coonawarrra Estate and Castello di Gabbiano

Beer :- Victoria Bitter, Crown Lager and Corona and Asahi

Spirit:- Cougar Bourbon, The Black Douglas, Aperol, Cinzano and SKYY

Non-alcoholic Drink :- Includes products, such as flavoured water, natural beverages and drinks with functional additives

Foster’s group is primarily divided into three major segments depending upon regions:-

Australia Asia & the Pacific

Americas

Europe, The Middle East and Africa

Foster’s Group has listings on the Australian Stock Exchanges under ticker “FGL”. The global headquarter of the Group is located in Victoria, Melbourne in Australia. The Company currently employs approximately 11,000 people and its products are sold in more than 155 countries worldwide. Its flagship international beer brand, Foster's Lager, is ranked in the top 10 international beer brands.

[edit] History

The Company’s genesis is dated 19th century i.e. in 1876 Jacob Beringer established Beringer Vineyards in the Napa Valley and in 1888, the first Foster's Lager was brewed and the original Mildara Winery got into existence.

Throughout the 20th century company was build by various merger & demergers. It sold its non-core business and in 2005, Foster's Group announced the creation of the world's leading premium wine business. It created Australia's leading multi-beverage business by acquiring Australian wine company, Southcorp

[edit] Strategy

Foster has strong long term strategies to develop into a world’s leading alcoholic beverage company. It has developed following strategies to cater to market and increase horizon of influence:-

Regional sales structure

Focus on improvement in core drink brands

Improve global supply chain in terms of cost, quality, flexibility and reliability

8 to 10% of sales revenue is applied to build brands and promote growth by expanding markets

Innovation is key to growth strategy of company with regional focus

[edit] Financial and operational performance

In 2007, the Company generated revenues of US$4.56 billion an increase of 4.7% over 2006 primarily owing to new models and innovation. Foster’s profit margins have also shown continuous improvement from 2005. Net profit before significant items and SGARA has increased 16.8 per cent to $716.1 million from previous year.