Expansion off
After years of strong growth, the Foster’s Group global expansion has been put on hold as conditions in the US wine market have proved tough and the rising Australian dollar has taken its toll. Foster’s reported a 17.5% drop in net profit for the 12 months to 30 June 2003 to AUD462.9 million. Second-half earnings collapsed 46% to AUD128 million.
Ted Kunkel, Foster’s CEO, also gave his strongest indication yet that Foster’s has shelved plans to take over wine giant Southcorp or other players in the wine industry. "With regards to this point, you may notice the de-emphasis on acquisition activity in the list of 2004 priorities," Kunkel was quoted as saying. The next financial year for the wine business would remain challenging..
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