Australian deal tightens world wine market
Foster's, the Australian beer and wine company, announced the acquisition of Southcorp, a leading wine supplier in Australia. In a $3.46 billion (US) deal. The deal will double Foster's wine operations, making it one of the largest wine companies in the world, rivaling American-owned firms Constellation Brands and Gallo. The company will have sales of over $2 billion
The deal comes at the same time as Pernod Ricard announced it would acquire most of the spirits and wine brands of Allied Domecq, and after some major acquisitions by Constellation over the past year. As we have pointed out before, the wine industry still has the appearance of a business dominated by small vendors, but the biggest vendors, with a wide variety of wines and labels, are pushing small vineyards off the shelves.
Foster's Group is well known in the US for its beer brand, a major import. But it is Foster's wine business that is even larger. Its Beringer Blass wine states division has major sales across the world for both Australian and California wines. The Australian labels include Wolf Blass, Yellowglen, and Black Opal. California-derived brands include Beringer, Stag's Leap, and Meridian. The company also has vineyards in Chile, New Zealand, and Italy.
Southcorp wine brands, all Australian, include Lindemans, Penfolds, and Wynns Coonawarra Estate.
Combined company brands
| Company |
Category |
Brands |
| Southcorp |
Premium wines |
Lindemans, Penfolds, Rosemount Estate |
| |
Boutique wines |
Coldstream Hills, Devil's Lair, Edward & Chaffey, Herrick, Kaisers Stuhl, Lanson, Leo Buring, Riccadonna, Rouge Homme, Ryecroft, Secret Stone, Seppelt, Talomas, Tollana, Wynns Coonawarra Estate |
| |
Consumer wines |
Blues Point, Glass Mountain, Honey Tree, Killawarra, Matthew Lang, Minchinbury, Queen Adelaid, Seaview, The Little Penguin |
| Foster's Group |
Premium Australian |
Black Opal, Ingoldby, Jamiesons Run, Rothbuty Estate, Wolf Blass, Yellowglen |
| |
Other Australian wines |
Andrew Garrett Wines , Annie's Lane, Bailys of Glenrowan, Greg Norman Estates, Maglieri of McLaren Vale, Matua (New Zealand) , Metala. Mildara, Mt. Ida, Mt. Tanglefoot, Pepperjack, Robertson's Well, Saltram, St. Huberts, T'Gallant, Yarra Ridge |
| |
US premium wines |
Beringer, Meridian, Stag's Leap |
| |
US boutique wines |
Chateau Souverain, Chateau St. Jean, St. Clement |
| |
Beers |
303 Icegold, Abbott's, Carlton, Cascade, Crown Alger, Foster's, Guangming, Melbourne Bitter, Powers, Redbank, Reschs, Shanghai Beer, Victoria Bitter, others |
| |
Ciders |
Mercury, Strongbow |
| |
Spirits |
42 Below (vodka), Black Douglas (scotch), Bounty (rum), Continenal (liqueurs), Cougar (bourbon), Kirov (vodka), Prince Albert (gin), SKYY (vodka), South (gin), others |
| |
Non-alcoholic beverages |
Torquay |
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