By James Atkinson
A 6 per cent drop in Foster's sales volumes last quarter can be partly attributed to management's preoccupation with the brewer's takeover by SABMiller, according to Macquarie Equities Research.
SABMiller yesterday announced Foster's volumes for the quarter ended December 31 were 6 per cent below the previous corresponding period.
While the volumes for Foster's were released on a pro forma basis only and were not included in SABMiller group or divisional results, Macquarie Equities Research said they nonetheless "must be of concern".
Macquarie said the decline was partly down to very weak consumer demand growth, and the ongoing adjustment by consumers to RTDs and ciders.
But they said the sales drop could also be attributed, "not unexpectedly, [to] the acquisition process taking Foster's management's eyes off the ball."
Macquarie said SABMiller's roll-out in Australia will follow the template that "worked so well with the Bavaria acquisition".
"There is not a lot to integrate, but it is more an issue of better understanding the Australian beer market and developing a long-term growth strategy," they said.
Macquarie said SABMiller will likely include a review of target synergies for the Foster's business in a detailed update to the market in March or April.
