SABMiller criticises the previous management of Foster’s

Hello? Didn’t they do due diligence before they bought Foster’s? So why complain now? At two recent investor conferences in the U.S. (February 2012) SABMiller’s head of investor relations, Gary Leibowitz, accused former Foster’s CEO John Pollaers and his team of failing to properly implement beer sales and marketing fundamentals and said it’s time to go back to basics.

Mr Leibowitz told analysts the key areas Foster’s will concentrate on to resuscitate the business. They will centre around better relations with retailers and improved channel management.

Above all, a mutually beneficial relationship with Coles and Woolworths – the nation’s largest sellers of liquor – will be established in an effort to repair the business’ performance and arrest the decline in Foster’s national share of the beer market.

Mr Leibowitz criticised Foster’s previous executives for neglecting these areas, including brand differentiation and creating category value.

‘‘All of which may sound obvious, but in our view had not been done for any significant length of time at Foster’s,’’ Mr Leibowitz said.

A rapid recovery by Foster’s will be particularly important because SABMiller’s former local brewing joint venture partner, Coca-Cola Amatil, has signalled that it intends to re-enter the Australian beer market in 2014. Coca-Cola Amatil is expected to be targeting a number of beer brands when its non-compete deal with SABMiller ends in two years, including the biggest-selling import label, Corona.