Scottish & Newcastle will buy Foster’s beer brand in Europe for about $680 million.
S&N already brews and distributes Fosters. Under the new agreement, S&N will own the brand in the UK and Europe, including several Eastern European nations, and in Turkey.
Foster’s will retain ownership of the brand outside Europe. “Foster’s will always be ‘Australian for beer’ and continue to represent the Australian way of life in more than 150 countries around the world,” said Foster’s group president Trevor O’Hoy. Foster’s has increasing emphasized its wine business, becoming the world’s second largest wine producer following its takeover of Southcorp last year.
Foster’s is most popular in the UK and S&N said it was responsible for around 82% of the total global sales of Foster’s last year.