Foster's wants more North American growth

Foster's says it will enter a joint venture with Miller to strengthen the marketing, sales and distribution of Foster's in the US. The joint venture will be called Foster's USA, and replaces the Molson USA partnership.

Canadian brewer Molson has exited the partnership and has reached agreement in principle with Millers and Foster's to buy back all its Molson brands in the US.

Under the terms of the new partnership, Foster's will get an increased equity holding in the restructured joint venture with Miller in exchange for its interest in the Molson trademarks.

Foster's says profit from the Foster's USA joint venture is not expected to be materially affected despite Foster's USA stepping up its investment in marketing to grow the Foster's brand for the long term.

A Miller spokesman, Mr Richard Strup, says the new agreement will help push Foster's sales.

"All the indicators tell us Foster's is a very hot brand - it has achieved 60% growth in the past five years and is one of the most profitable beer brands in the US. Increasing the focus and investment behind the brand will enable the Foster's USA joint venture to capitalise further on this impressive success."

In addition to the Miller partnership, Canadian brewer Molson has also signed a new licensing deal with Foster's, agreeing to increase its commitment to the Foster's brand, including considerably increasing the amount it spends on marketing in Canada.

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