A range of quality vineyards and winery assets in the Clare Valley, Coonawarra, McLaren Vale, Padthaway and Wrattonbully regions in South Australia and Mt Barker in West Australia has been offered for sale on behalf of Constellation Wines Australia. The relevant winemaking and fruit-supply arrangements are subject to negotiation. In Adelaide, persistent ‘grapevine’ rumours suggest that Constellation is set to pull out of Australia completely if the market for Australian wines does not improve.

Peter Lehmann, 78, Barossa valley wine legend, is celebrating the remarkable turnaround of the company that bears his name, following the news of its best-ever financial result.

The Fosters Group have served up the dregs for investors with their first profit drop in 16 years, revealing a fall of 88 percent (AUD 117 million) to 30 June 2008, and due mainly to a massive write-down of the value of their wine businesses. Admitting that they paid too much for their wine assets (principally Beringer and Southcorp), Foster’s said that financial returns from wine have not met expectations and that the multi-beverage marketing approach had failed.

Australian Vintage (formerly McGuigan Simeon Wines), the country’s third largest winemaker, unveiled its first net profit in two years on 27 August 2008.

In October Kirin Breweries will launch a new high alcohol (7% ABV) beer in a bid to gain a bigger share of the domestic market. The beer, named Strong Seven, represents Kirin’s development of a third category beer, supplementing regular beers at 5% ABV and low-malt beers at 3% - 4% ABV. The new category is aimed at 30 to 50 year old males. Both Kirin and Suntory have already experienced success with higher alcohol shochu liquor-based drinks.

According to the Financial Times, InBev is weighing up whether to sell their Korean beer business, Oriental Brewery, and certain brands in Germany, among other assets, as they try to find the best way to fund their purchase of U.S. brewer Anheuser-Busch.

Obviously, Turkish Efes does not have to takes sides in the conflict. Yet shareholders fear that the brewer will lose business as a result of tensions in the Caucasus. Shares of Anadolu Efes fell the most in more than a year in Istanbul trading on 27 August. Anadolu Efes’ shares plunged 1.40 liras, or 11 percent, to 11.50 liras, the biggest drop since June 2006.

In July 2008 leading drinks company Diageo was reportedly holding talks with Cobra Beer over the acquisition of a 30 percent stake in the brewer for USD 80 million to USD 100 million. Well, no more. Diageo confirmed at the end of August 2008 that negotiations have ended.

Following a review, Constellation Brands, the world’s largest wine company, will undertake a massive AUD 154 million (EUR 89 million) restructure of its Australian operations. Of concern is news that Constellation Australia will sell about half its vineyards in the country and reduce production sites from ten to seven. The number of products, especially the cheaper priced ones, will also be cut to increase efficiency and reduce debt.

The Foster’s Group, the world’s second-largest wine company, announced on 26 August 2008 that its annual net income fell 88 percent, owing to a large write-down on its global wine operations. Net profit fell to AUD 117.7 million (EUR 67 million) from AUD 966.2 million a year earlier, the company said in a statement. The firm, whose assets include seven of the top ten selling brands of beer in Australia, said it was taking a write-down of AUD 602.9 million (EUR 346 million). This is the first loss Australia’s biggest beer and winemaker posted in 16 years.