Trevor O’Hoy, who will assume the role of Fosters’ chief executive from Ted Kunkel at the end of the year, has already made the comment that the company’s North American (Beringer) wine interests need urgent review. On the domestic front, the decision by the local management of Beringer Blass to extend the Wolf Blass wines into an even more comprehensive tier of easily identifiable labels provides part of the reason why this once cashed-up business wasn’t looking at a takeover of Southcorp. By remodeling the Blass range in this way – which effectively lines it up as a natural competitor to Southcorp’s hierarchical model but under a single brand – we see a clear indication of this company’s belief in its Wolf Blass asset. About a year ago I asked Jamie Odell whether or not the company would put in a pitch for Southcorp. ‘We don’t think we need it’, was his reply. Without making any attempt to predict whether or not this approach will work, it’s clear that Foster’s always wanted to expand their wine presence by capitalizing on what they already owned.
