Foster’s Group- A New Product Portfolio
William & Ralph Foster: 1887
Headquarters: Melbourne, Australia.
Largest selling Australian beer.
Also deliver: Wine, Spirits & Ciders.
Brewed in 9 countries at over 20 plants.
World’s 3rd most widely distributed brand.
Available in more than 150 countries.
Foster’s Multi beverage business
Foster’s huge brand portfolio enabled it to
have significant presence in every product
category and market segment.
•Value for money category
Brand Equity and Distribution network.
Specific Managers catering to its specific
Also offers hotel chain, restaurants, pubs
and small bottle shop owners a multi-
Classified its various brands depending on
their brand power.
Foster’s In India
• Fosters is the first foreign brewery to establish operations in India located at
“Foster’s India Ltd M-99, MIDC, Waluj, Aurangabad.”
• Invested a $ 20 million into an 18 million brewery located in Aurangabad.
• Production commenced in June 1998.
• Fosters has the second largest share in the Mumbai City.
• It’s a light beer category. It is by definition extremely light in colour & body
& mild in flavour.
• Developed using innovative process of ultra high gravity brewing.
• In 1972 all brand importers started importing Fosters to the U.S.
• In 1976 the CUB sent one million cans to New York.
• New touch to the Fosters in 1993.
• Now it is the third largest selling International beer brand.
• Goal of Fosters stated by Pradeep Gidwani, Managing Director,
Foster’s India Ltd. “We want to establish Foster’s as an
international premium lager beer”.
• 70% of the Fosters sales come from pint size market.
• In 2000 notched up sales of Rs. 25 crore with around 1.58
million cases sold.
• First time drinkers
• Younger crowd
• College /Office going youths
• Maharashtra is the highest consumer of beer
• In world wide spirits to beer ratio is 1:7. In India it is 7:1
2000 2002 2004
Litres Per Person – Beer in comparison with other
USP OF FOSTERS BEER
•The Indian pallet and food is more
associated with beer. This beer combines
nicely with Indian food.
•Has 38 calories per 100 ml which is very less
compared to other like red wine 75 cal./100
ml, Champagne 70 cal/100 ml.
IMAGE OF THE BRAND
• Beer as a product has been confined to form 5 categories of dominant
• Fosters product gels well with the friendship image
• Ideal for image as sports person.
• It sponsors to formula I grant prix from 1986.
Friendship - 50%
Sex 55% -
Sport 22% 10-
Tradition - 30%
Relaxation 22% 10%
•Diversified into wines in 1997.
•Rejuvenated its beer brand.
•In 2001 launched HOW TO SPEAK AUSTRALIAN advertising campaign.
•Increased the length of TV campaign and launched a national radio campaign.
•Restructured the operation of Carlton and United Breweries(CUB).
•Acquired Australian brand Mildara Blass wines which was quite success in export
•Also forged a partnership with another major US wine manufacturer to increase
its presence in international wine market.
•In 2000 Bought a Californian winery, Beringer for $1.5 billion.
•In 2004 introduced their product in low priced $US 8-9 per bottle to have
presence in non premium wines also.
•Merger with Southcorp in 2005 benefited both the companies and created the
worlds largest producer of wine generating $113 million in synergy benefits.
•Fosters net profit increased by 10.5% in 2006, Revenue growth of 7% and earning
growth of almost 18%.
•Ad: “STOP USING YOUR TEETH” buy a Fosters
lager 12-pack & get a free bottle opener.
•They also sponsors:
• AFL(Australian Football League)
• NRL(National Rugby League)
• Horse Racing
• Australian cricket
•Financial support to non-profit organizations.
A conversation with Fosters wine
Why are we
you like us?
Full range of
New styles &
wine & place
FOSTER'S GROUP LTD SWOT ANALYSIS
•Diversified brand and product portfolio
•Large Portfolio of Agricultural Assets
•Strong Brand Equity
The company is not well spread in terms of geographical location. This
would make it vulnerable to risk that is specific to a particular region.
However its produce is sold via retail medium to in America, Europe, the
middle East, Africa and Africa.
Innovations on new product has improved its product portfolio and allowed
it to have an edge over other competitors in the industry.
In 2008 the Company launched new products;
Cascade Green, Carbon offset beer, re- launched Carton Premium Dry in
the lower carbohydrate category.
Other innovations of the company include Zero sugar ready to drink
product in the Australia Market and Carlton Dry Fusion.
New product Lines
Foster's and its Subsidiary are subject to legal restrictions on
advertising and marketing of alcoholic product, which could
be a serious setback to the value of existing product and
reduce its revenue.
Regulations restricting commercial advertising of alcoholic
Products And intense competition.