Keen on New World wines
Allied Domecq and Diageo are thought to be keen on acquiring New World wine companies. Rumours that Diageo was going to bid for Foster’s Brewing Group are indicative of such an interest.
Although forecasts issued by the organisers of the Vinexpo trade show argue that the world’s wine industry will face a surplus of more than 100m hl a year by 2005, Beringer Blass’ Managing Director, Terry Davis, was quoted as saying that there was still a shortage of premium grapes.
That is probably one of the reason why Australasian wine companies are on a frantic buying spree. In March Southcorp (Penfolds, Lindemans), which produces 18m cases, took over the family-owned Rosemount Estates wine company, which produces 4.25m cases, for A$1.5bn (US$735m).3bn company (US$2.1bn (US$539m)..
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