Foster's denies plans to sell wineries or brands

Australian liquor giant Foster's says it has no new plans to sell some of its secondary wine brands or offload wineries as it continues to review its wine operations in the wake of last year's A$3.7 billion ($4.06 billion) acquisition of winemaker Southcorp.

A media report today said the global beverages firm was working on a comprehensive review of its winery operations in rural Australia and could sell some second-tier brands.

However no major brands would be sold.

The report said the review could also lead to winery sell-offs.

A Foster's spokesman said that at this stage the company had nothing to add to what it had already told investors at a strategy briefing in September 2005.

Foster's said at the time that it would sell one Hunter Valley winery and one Coonawarra winery.

Foster's chief executive Trevor O'Hoy said in the media report that the review would find ways to help Foster's capitalise on its increased scale in the wine sector following the Southcorp acquisition and ways to cut production costs.

Foster's shares were one cent lower at A$5.53 by late morning.

- AAP