Foster's says Southcorp integration on track

Foster's Group Ltd says the integration of winemaker Southcorp is on track and synergies are tracking to plan.

In a strategy briefing today, the global beverages group said it expects synergies of A$40 million ($44 million) to A$50 million in fiscal 2006 building to A$130 million to A$145 million by fiscal 2008.

During the next 12 months, it will invest eight to 10 per cent of revenue in its brands, with a focus on the Foster's brand, as well as a relaunch of the Rosemount brand.

Foster's acquired Southcorp -- whose brands include Penfolds, Rosemount Estate, Lindemans and Wynns -- for A$3.2 billion in May.

- AAP