The process that began last February to rationalise Foster’s extensive and potentially self-competing series of wine brands has been ‘substantially completed’ in the words of David Dearie, managing director of the company’s wine divisions in Australia and New Zealand, with the announcement that 13 brands will be shifted sideways to a new 50:50 joint venture with the Adelaide-based drinks distributor, VOK Beverages.The list of brands to be transferred comprises the little-known Half Mile Creek, Fishers Circle, Cartwheel and Boronia, the once-important Queen Adelaide, Matthew Lang, Andrew Garrett and Rouge Homme, the once-hip Yarra Ridge, the formerly Lambrusco-driven Maglieri of McLaren Vale, two of the former market leaders in Australian sparkling wine in, Minchinbury and Great Western, plus Galway Pipe Ð the port once described by Len Evans as the most important wine in Yalumba’s portfolio. Foster’s will continue making these wines.It would be fair to describe these brands as containing little of current economic significance, although VOK Beverages describes itself as being ‘recognised for realising the untapped potential of brands’. The list were among 37 labels in the Foster’s collection targeted as contributing just $60 million in sales between them during a review of the wine division following a $730m writedown of assets last year. Of these 37 brands, 17 have been scrapped entirely (including Kaiser Stuhl), one has been sold and another six remain on the market. Foster’s has said this deal should not materially affect its finances.Vok Beverages, a privately owned and managed Australian company, entered the Australian market in August 2002. It will handle sales, marketing and general management of these brands from 1 December. While it has become one of the fastest growing companies in the market with a powerful record in Diageo-owned and privately owned spirits brands, VOK Beverages has no previous experience selling and branding wine.
