Foster's Group

Foster's Group was an Australian beverage conglomerate whose best-known association was with Foster's Lager, although its historical portfolio extended well beyond that single beer brand. The business originated in Melbourne in 1888, when American brothers William and Ralph Foster established a brewery using refrigeration technology. Refrigeration was particularly valuable in Australia's warm climate because it made the production and storage of lager more practical than relying solely on the darker ales common at the time. The brothers sold the brewery after about a year and returned to the United States, but the Foster's name remained attached to the brewing operation. The modern group was formed through the consolidation and renaming of major Australian brewing interests. Elders IXL acquired Carlton and United Breweries in 1983 and renamed the brewing operation Elders Brewing Group. In 1990, the company adopted the Foster's Group name, reflecting the international recognition of Foster's Lager. Its business included brewing, beverage distribution, brand licensing and importing. In Australia, the group handled a broad collection of local and international beer, cider, spirits, soft-drink and imported beverage brands. Foster's Lager was also produced and sold under licence in North America, where Molson was involved in brewing and distribution. Foster's expanded substantially into wine in 2005 through the acquisition of Southcorp Wines. That transaction brought brands such as Penfolds, Lindemans and Rosemount into the group and significantly increased the importance of wine within its portfolio. The wine division later became a source of strategic and financial pressure. In 2008, chief executive Trevor O'Hoy resigned after weak performance in the wine business, and Ian Johnston became acting chief executive. The group subsequently recorded a major write-down in the value of its wine operations. In 2011, shareholders approved a structural separation between brewing and wine. Treasury Wine Estates was created from the wine business and began trading independently on the Australian Securities Exchange in May 2011. The remaining brewing business was renamed Carlton & United Breweries, or CUB, before being sold to SABMiller for approximately A$9.9 billion. Foster's Group shares were suspended and then removed from the ASX in December 2011, ending the listed corporate entity's independent existence. SABMiller itself was acquired by Anheuser-Busch InBev in 2016, making the former Foster's brewing operations part of that global brewing group. In June 2020, Anheuser-Busch InBev sold Carlton & United Breweries, including the Foster's beer business and other Australian brands, to Japan's Asahi Group Holdings. Consequently, Foster's Group is no longer an operating standalone group. The Foster's name survives primarily as a beer brand within successor brewing businesses, while the corporate group was effectively replaced by the separated Treasury Wine Estates and Carlton & United Breweries businesses.

Foster's Group traces its origins to a Melbourne brewery established in 1888 by William and Ralph Foster, two American brothers from New York. Their refrigeration plant helped address the technical challenges of brewing lager in Australia's hot conditions. They sold the brewery the following year, but the Foster's name continued in Australian brewing. A major corporate predecessor was Carlton and United Breweries. Elders IXL acquired that business in 1983 and operated it as Elders Brewing Group. In 1990, the group changed its name to Foster's Group, using the internationally familiar Foster's brand to represent a wider beverage company. The group developed a portfolio covering brewing, importing, licensing and distribution, with brands ranging from Australian lagers and ales to international beers, cider, spirits and soft drinks. The 2005 purchase of Southcorp Wines transformed Foster's into a combined beer and wine group. The acquisition added major wine labels, including Penfolds, Lindemans and Rosemount. Wine later underperformed, contributing to executive changes and a substantial reduction in the recorded value of the division. In 2008, chief executive Trevor O'Hoy resigned and Ian Johnston took the acting CEO role. Foster's ultimately concluded that its brewing and wine businesses should operate separately. In 2011, shareholders approved the separation of Treasury Wine Estates from the brewing operations. Treasury Wine Estates listed independently in May, while the brewing operation became Carlton & United Breweries. SABMiller acquired the brewing business in September 2011, and Foster's Group ceased to be an independently traded company later that year. The successor brewing business changed ownership again when Anheuser-Busch InBev acquired SABMiller in 2016. In June 2020, Carlton & United Breweries was sold to Asahi Group Holdings. The Foster's corporate group therefore no longer operates as a standalone entity, while Foster's Lager remains a brand within the successor Australian brewing business.

1. 2020Carlton & United Breweries sold to Asahi

   Asahi Group Holdings completed its acquisition of the Australian brewing business, including Foster's beer.

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2. 2016Foster's brewing operations moved to Anheuser-Busch InBev

   Anheuser-Busch InBev acquired SABMiller and thereby became the owner of Carlton & United Breweries.

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3. 2011Brewing and wine businesses separated

   Treasury Wine Estates was separated and listed independently, while the brewing business became Carlton & United Breweries.

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4. 2005Southcorp Wines acquired

   The acquisition expanded the group into wine and added Penfolds, Lindemans and Rosemount.

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5. 1990Elders Brewing Group became Foster's Group

   The corporate name was changed to Foster's Group in recognition of the Foster's brand's international visibility.

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6. 1983Elders IXL acquired Carlton and United Breweries

   The Australian conglomerate acquired Carlton and United Breweries and renamed the operation Elders Brewing Group.

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7. 1888Foster brewery established in Melbourne

   William and Ralph Foster founded a Melbourne brewery designed to produce lager with the aid of refrigeration.

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A broad Australian beverage house built around mass-market brewing, internationally exported Foster's Lager, a large domestic beer portfolio and, for part of its corporate history, a substantial wine division.

• Foster's LagerBeer

  The group's internationally recognized lager brand and the name used to identify the broader corporate group from 1990. It was exported and, in the United States and Canada, brewed and distributed under licence.

• Carlton & United Breweries portfolioBeer

  The brewing business included major Australian brands such as Carlton Draught, Victoria Bitter, Crown Lager, Melbourne Bitter, Cascade, Pure Blonde and Great Northern, alongside imported or licensed labels.

• Southcorp Wines portfolioWine2005

  The wine division brought established Australian labels including Penfolds, Lindemans and Rosemount into Foster's Group. It was separated into Treasury Wine Estates in 2011.

• Cider portfolioCider

  The historical portfolio included cider brands such as Strongbow, Bulmers and Mercury, reflecting Foster's strategy of distributing products beyond its core lager range.

• Spirits and non-alcoholic beveragesSpirits and soft drinks

  Foster's imported, licensed or distributed various spirits and non-alcoholic beverages, including brands associated with gin, vodka, tequila, liqueurs, soft drinks and mixers.

• 2020Transfer Australian brewing assets to AsahiM&A

  Following Anheuser-Busch InBev's acquisition of SABMiller, the Australian brewing assets were sold as part of the owner's portfolio reshaping.

  What changed. Asahi Group Holdings acquired Carlton & United Breweries, including the Foster's beer business.

  Aftermath. Foster's beer continued under successor ownership, while Foster's Group remained defunct as an independent corporate group.

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• 2011Separate brewing from wineStrategy

  The wine division had become strategically and financially problematic, while investors argued that brewing and wine would be more effective as separate businesses.

  What changed. Shareholders approved the creation of Treasury Wine Estates as a separate listed wine company and the retention of brewing operations in Carlton & United Breweries.

  Aftermath. Treasury Wine Estates began trading independently in May 2011, while Carlton & United Breweries was sold to SABMiller later that year.

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• 2011Sell Carlton & United Breweries to SABMillerM&A

  Foster's had been the subject of repeated takeover interest from large international beverage companies.

  What changed. The renamed brewing business was sold to SABMiller in a transaction reported at approximately A$9.9 billion.

  Aftermath. Foster's Group was delisted from the Australian Securities Exchange in December 2011.

  Transaction value. Approximately A$9.9 billion (2011)

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• 2008Occupational safety convictionControversy

  Foster's Group was convicted and fined more than A$1 million for two Victorian occupational health and safety breaches linked to a worker's death in 2006. The case also prompted calls for fuller health and safety reporting in the company's annual disclosures.

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• 2020Asahi acquired Carlton & United Breweries

  Asahi Group Holdings completed its purchase of Anheuser-Busch InBev's Australian beer assets, including Carlton & United Breweries and Foster's beer.

  M&A
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• 2020Asahi acquires Carlton & United Breweries

  Asahi Group Holdings completed its purchase of Carlton & United Breweries from Anheuser-Busch InBev, taking ownership of the Australian brewing business that included Foster's beer.

  M&A
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• 2016Anheuser-Busch InBev acquired SABMiller

  The acquisition of SABMiller placed Carlton & United Breweries and the Foster's beer business under Anheuser-Busch InBev.

  M&A
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• 2016AB InBev acquires SABMiller

  The acquisition of SABMiller by Anheuser-Busch InBev placed Carlton & United Breweries and the Foster's brewing assets under AB InBev ownership.

  M&A
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• 2011Foster's wine business separated as Treasury Wine Estates

  Shareholders approved the division of the brewing and wine operations, and Treasury Wine Estates began trading as a separate listed company in May.

  M&A
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• 2011Foster's brewing business sold to SABMiller

  The brewing operation, renamed Carlton & United Breweries, was sold to SABMiller in a transaction reported at approximately A$9.9 billion.

  M&A
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• 2011Foster's Group delisted from the Australian Securities Exchange

  Foster's Group shares were suspended in early December and delisted at the close of trading on 20 December after the SABMiller acquisition.

  M&A
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• 2011Foster's shareholders approve separation of wine business

  Shareholders approved the division of the brewing and wine operations, creating Treasury Wine Estates as a separately listed company and leaving the brewing assets under Carlton & United Breweries.

  M&A
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• 2011SABMiller acquires Foster's brewing business

  SABMiller completed the acquisition of the brewing business after Foster's Group was renamed Carlton & United Breweries and its wine division was separated.

  M&A
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• 2008Chief executive Trevor O'Hoy resigns

  Trevor O'Hoy resigned as chief executive during a period of weak performance in the group's wine division. Ian Johnston subsequently served as acting chief executive.

  Leadership change
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1. Foster's Group