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Foster’s Closing Ranks Again

Back in June, Foster’s announced it was pulling out of its last remaining brewery in China. Now they’re also leaving India and Vietnam. Reportedly, Foster’s wants to concentrate on their domestic beer market and on selling wine.


The Vietnam operations are being sold to Asia Pacific Breweries. According to their press release, APB “will be purchasing the Vietnam assets of the Foster’s Group for $105 million. This transaction includes the rights to brew, market and distribute Foster’s Lager, Biere Larue, BGI, Flag and Song Han, in Vietnam.” This acquisition brings APB’s total ownershio to 29 breweries in ten countries.


Foster’s India is being sold to SABMiller for $120 million.

From the SABMiller press release:

Foster’s India currently operates one brewery based in Aurangabad in the state of Maharashtra with a licenced annual capacity of 350,000 hectolitres. The company produces, distributes and supports Foster’s Lager, Amberro Mild and Amberro Strong beer brands in the Indian market. In the year ended 30 June 2006, total beer sales were 236,000 hectolitres (2005: 209,000 hl) with Foster’s Lager representing 88% of total production and sales (2005: 85%).

India is the third largest market for the Foster’s brand globally and it has achieved a CAGR of 13% since operations commenced in 1998. It has a presence in 19 Indian states and has a substantial share of the mild beer segment in the strategic state of Maharashtra.

SABMiller India will look to extend Foster’s Lager nationally through its network of ten breweries and seek significant cost benefits from brewing and distributing the brand locally. The Aurangabad brewery will also provide additional capacity for SABMiller’s presence in Maharashtra as well as a platform for access to the Mumbai market.

SABMiller India is the subcontinent’s second largest brewer. Its brand portfolio includes Royal Challenge, Haywards 5000, Castle and the recently launched Haywards Black, India’s first stout beer.

The Foster’s Brand

First brewed in 1888 by the Foster brothers in Melbourne, Australia, Foster’s Lager is one of the world’s best beers. As one of only a handful of truly global beer brands, Foster’s in now available in over 150 countries. Foster’s is one of the fastest growing international premium beer brands in the world and has enjoyed international growth of 40% since 1997. Foster’s is brewed in 12 countries, at 17 locations with over 100 million cases of Foster’s sold annually.

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