SABMiller's try at Fosters Falls Short
Now, Australian beer isn't generally something you would travel half way around the world far. Fosters is about as artisan and flavorful as Bud mixed with Corona, but I guess some people don't know that down under "beer" is actually Australian for beer. However, as Bud's counterpart in the Australian royal family, a takeover could be a lucrative business deal.
SABMiller, one of the huge global beer-conglomerates has recently attempted a buyout of Fosters. The first round of "friendly" buy attempts has failed as the per-share price offered seemed much to low. At a time where Fosters is on the decline, spinning off its wine unit, it may not be able to stand alone for much longer without giving in or succumbing to a hostile takeover by SAB or another bidder. In a down economy and with everyone but the smallest players being picked up, it will be hard for Fosters to stand alone in the global market. As the conglomerates grow larger, they all begin to face the Microsoft and Berkshire-Hathaway problem, you can be big, you can be profitable, but you need to buy someone else really big or do something really big in order to have any noticeable growth on a percentage basis.
Just a few years ago, Australia's other big brand, Lion Nathan, was snatched up by Kirin of Japan. Though, perhaps the globalization will help improve the craft industry in Australia. I am not really sure increasing Fosters global reach would help anyone's bottom line. As Michael Jackson (the Beer Hunter not the King of Pop) once said "the more macho, muscular and tanned a society, the blander its beers. See Deep South and Australia".
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