Further pain before any relief
Foster’s wine division Beringer Blass Wine Estates (BBWE) must be giving everybody a booming headache - at least this is the conclusion to draw after having studied its review of the global wine trade business. Owing to an oversupply of wine, particularly in North America, which led to the emergence of new categories such as "extreme value wine" (read "low price"), and a simultaneous slowdown in the historical growth rates for premium priced Californian wine, Foster’s has announced write-downs estimated at between AUD270 million and AUD300 million (USD207 million), which will be included in the 2004 full year results. The group also cut its outlook for earnings growth in the year to 30 June to one percent from an earlier forecast of at least 2.9 percent.....
Select offer and read on
6 print issues