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.

Castlemaine Perkins has reduced the alcohol content of XXXX Bitter from 4.8% to 4.6% ABV to coincide with the latest biannual rise in excise.

Distribution company Premium Beverages, 80 percent owned by Coopers Brewery, has won the distribution rights to distribute the Budweiser beer brand in New Zealand. Imported beer is a fast growing category in the New Zealand beer market. The deal with Budweiser takes effect on 1 October 2008 and replaces a deal with wine distributor Negociants.

Wine and beer don’t mix, but they’re part of an increasingly complex cocktail the acquisitive Kirin Holdings is serving up to its shareholders. Australia’s National Foods group, which the Japanese brewer acquired last year for USD 2.4 billion, agreed in August to buy Australia’s Dairy Farmers for USD 790 million. Kirin’s operations now include beer, wine, soft drinks, drugs, milk and cheese, flowers and seeds and real estate.

Sapporo shareholders could be in for a rude awakening if Steel Partners and allies decide to sell their 18.6 percent stake in the Japanese brewer. Without an activist stock owner around who’s keen to improve the brewer’s poor performance as well as buy more shares, the stock price may plummet.

In one go, Carlsberg has disposed of its stakes in both Türk Tuborg and Israel Beer Breweries for a total of USD 116 million. The buyer is the Israeli CBC Group, a Coca-Cola franchisee, who was Carlsberg’s partner in Turkey and Israel.

Diageo, the world’s biggest alcoholic drinks company and owner of Guinness and Johnnie Walker whisky, is in talks to acquire a 30 percent stake in Cobra Beer, the private Indian-themed lager company, for about GBP 25 million to GBP 30 million.

Having tried their hand at brewing, Coca-Cola Amatil’s next project is to get involved in the dairy industry. The soft drink company will release a range of Goulburn Valley flavoured milks in Adelaide in September and then nationally, after trial marketing in Western Australia.

Following the resignation of Foster’s CEO in June, the board’s decision in July to appoint one of its directors, Ian Johnston as acting CEO says two things. One is that the board is now firmly in control of the day-to-day management of the group and the other is that it is not going to rush the search for a permanent CEO.