Foster's seals spirits buyout

By Dita De Boni

Foster's Brewing Group put an end to weeks of speculation on both sides of the Tasman, announcing yesterday the acquisition of Seagram's Australian spirits business and Seagram stock in New Zealand for $A87 million ($109.25 million).

Foster's spokeswoman Jill Hollingworth would not disclose how much the New Zealand portion of the sale was worth, saying only that Wilson's Whisky and Captain Morgan Rum were the main brands sold here.

A new business, The Continental Spirits Company, is effective from today under Foster's Carlton & United Breweries division.

Continental will produce and distribute brands such as Karloff Vodka, Coyote Tequila and Seagram's Liqueurs, as well as acquiring the bottling and distribution rights to international Seagram brands like Captain Morgan Rum, Chantelle Brandy and Seagram's Extra Dry Gin.

It will also take over the distribution of renowned international brands Chivas Regal and Absolut Vodka.

Ms Hollingworth said Foster's was aware of the "difficulty of liquor distribution in New Zealand when outlets are generally tied either to Lion or DB."

She said the distribution would work on existing channels but she would not expand on strategy.

Foster's already has a small presence in the New Zealand beer market - around 4 per cent - with a host of brands led by Victoria Bitter, Crown Lager and Foster's.