E-Malt.com News article: Australia: Foster's Group may change its name

Australian wine and beer company Foster's Group is considering dropping "Foster's" from its name as it focuses on premium beverages, AAP posted on October 6th. Foster's Group chief Trevor O'Hoy is apparently less than impressed with the corporate title, telling investors in London he would like to change it.

Foster's chief executive, who is meeting investors in London, told Britain's Financial Times newspaper he was not keen on having brand names as corporate names and the company would probably opt for a more "generic" name. "As we grow, the brand Foster's becomes less important to us," Mr O'Hoy told the paper.

Foster's expanded its wine operations with last year's purchase of Southcorp.

Once marketed by its owner as Australia's "favourite" beer, Foster's switched to being called the country's "most famous" beer when its popularity was taken over by the Foster's-owned brand, Victoria Bitter. Foster's is planning to develop VB sales in Europe and North America, the Financial Times said.

Foster's owns about 60 wine brands, 35 beer brands, six spirits and cider brands and four non-alcoholic brands.

The name dates back to 1886 when the Foster Brewing Company was formed and the first Foster's Lager was brewed in 1888. And despite the brand being one of the world's top-selling beers, it commands little of the Australian market.

Foster's recent overhaul has generally been well received by shareholders. The company's share price, which has risen nearly 15 per cent over the past year to $6.38, has recently been fuelled by takeover speculation.

According to a report in the Financial Times, Mr O'Hoy told investors the company would probably decide to go for a more "generic name". But a decision in the next 12 months was unlikely.

Shaw Stockbroking analyst Scott Marshall said it might be time for Foster's to consider a name change, given the brand's reducing relevance to the organisation.


06 October, 2006