Brewer Foster’s Group Ltd
(ASX:FGL) has signed a long-term agreement with Southern Wine & Spirits for the US company to distribute its wines.
Southern Wine & Spirits will gain the exclusive rights to sell Foster’s global portfolio of wines in three of the largest US markets; California, Florida and Illinois.
Up until now, Southern Wine & Spirits had shared the portfolio of Foster’s wines in each of these states, with other distributors and Foster’s own self-distribution.
Foster’s says it looks forward to continuing its strong partnership with Southern under these new agreements which it believes will deliver superior performance in each of these key states.
President and COO of Southern Wine & Spirits of America, Wayne Chaplin says the company is looking forward to partnering with Foster’s to realise their route-to-market goals of sustainable brand growth, in-market execution and portfolio premiumisation.
The new contracts will come into effect from July 1, 2010. Foster’s Group earned profit of $438.3 million in fiscal 2009, four times its result the year before.
