S&N seals the Foster’s Deal
Australian lager brand Fosterâ€™s is to become a fully fledged Pom this summer, following its purchase by the UKâ€™s biggest brewer, Scottish and Newcastle (S&N).
The company already brews and distributes the beer in Europe, but under the new deal it will own the Fosterâ€™s in the UK and the rest of Europe, including some Eastern European nations and Turkey. Following the deal, Fosterâ€™s Group will retain ownership of the brand outside of those areas.
â€œFosterâ€™s will always be Australian for beer,â€™â€ said Trevor Oâ€™Hoy, president and CEO of Fosterâ€™s Group. â€œIt will continue to represent the Australian way of life in more than 150 countries around the world.â€
S&N bought the brand for a reported Â£309 million and is expected to raise Â£210m of that in a share-placing exercise; it will also increase borrowings.
S&Nâ€™s chief executive Tony Froggatt commented: â€œAs an Australian, I am proud that S&N is the custodian of one of Australiaâ€™s best-known brands.â€
Fosterâ€™s lager is most popular in the UK, where, some reports claim, it accounts for around 82% of total global sales.
db May 2006