Foster’s not to be split up?

Speculation has been rife that international brewers are interested in Foster’s domestic beer business if it is separated from the struggling wine unit.

However, the chances of Foster’s being swept up in a global brewing industry consolidation are decreasing as expectations grow that the wine unit will stay. Analysts say the wine operation, which ranks second behind Constellation, will be tough to sell as potential buyers are few and harsh debt markets make funding a deal difficult.

Returns from selling wine are also under pressure as supplies are plentiful but consumer demand is slowing.