Foster’s Brewing has followed the announcement of its $427.8 million dollar proft for the year ended 30 June 2000 with the news that it has acquired premium US winemaker Beringer for a total of $A2.56 billion. In doing so its wine subsidiary Mildara Blass becomes the world’s third largest wine producer after LVMH and Gallo, but assumes the title of the world”s largest premium wine producer. This news comes after heated speculation linking other major Australian wine companies such as Southcorp and BRL Hardy with US producers, not to mention constant rumour that Mildara Blass was about to purchase either Montana or Corbans in New Zealand. Foster’s has offered $US55.75 for each Beringer share and has already received acceptance for 55% of the shares through major Beringer stakeholder the Texas Pacific Group, owner of 52% of the business, plus the 3% owned by Beringer management. Only 4% of Beringer’s wine is presently exported, while 50% of Mildara Blass’ production is sold through its extensive export network into a total of 67 countries. There are obvious opportunities for Beringer’s wine, which includes some of the most high-profile names in the US industry like Chateau St Jean, Chateau Souverain, Meridian Vineyards, Beringer Vineyards, Stag’s Leap and St Clement Vineyards. It will be fascinating to watch the reaction of Southcorp, which has publicly flagged its likely sale of other divisions to create capital for offshore winery purchases.
