Weeks after announcing write-downs of up to $700m on the value of its global wine business, Foster’s is resuscitating a forgotten Tasmanian wine label as it seeks to rebuild momentum in the restaurant market. The launch of a new top-shelf brand is a rarity at Foster’s, which is seeking to consolidate its portfolio of more than 50 wine brands and comes as chairman David Crawford embarks on a review of the wine business, which could result in asset sales. Heemskerk, originally launched in 1975, enjoyed considerable success in the 1980s before being hived off into the Cellarmasters wine club business as an in-house brand available only to members. Foster’s sold the Cellarmasters business last year but retained the Heemskerk label, which group marketing manager for specialist brands Nicholas Crampton said would be restricted to restaurants and fine wine retailers. “It’s the same strategy used by most of the top boutiques … it’s one Foster’s hasn’t used as aggressively before,” he said. The ubiquity of Foster’s brands, including Penfolds, Lindemans, Wolf Blass and Rosemount, in retail outlets has been their downfall in on-premise sales, with few restaurant diners willing to shell out $50 or more for a bottle of wine they know they can buy for less than half that price at Dan Murphy’s. Foster’s also lost restaurant customers after the 2005 acquisition of Southcorp by attempting to sell both beer and wine through a single sales team, alienating high-end clients accustomed to more specialised service. Mr Crampton said 95 per cent of Heemskerk wines, which were priced at up to $60 a bottle, would be sold through restaurants. The Australian, July 7.
Jul 27
