31 May 2012
An interesting read on the challenges facing SABMiller as they work to turn around the struggling Foster’s brand…This from Reuters:
(Reuters) - World No.2 brewer SABMiller (SAB.L) is set for a tough battle to turnaround its Australian Foster's acquisition as its beer volumes sink and it loses key import contracts which will stretch management to meet new aggressive targets.
Investors are unconvinced that SABMiller, which has built up its business around fast-growing emerging markets to become the biggest brewer there, made the right move in buying the No.1 player in mature market Australia when its beer volumes, profit and market share were all going south. SABMiller's shares have underperformed its main rival Anheuser Busch InBev (ABI.BR).
SABMiller spent $11.8 billion late last year on Foster's and set out ambitious targets to reverse the decline of the perennial underperformer in an Australian market where beer has lost out to wine and volumes have been flat for nearly 20 years.