Foster's faces exchange rate hit
The Australian wine group Foster's has warned that business is performing below expectations due to decline in demand for Australian wines and poor currency exchange rates.
Profits for the first half of 2010 are expected to drop sharply with losses of around $80 to $90m from wine earnings due to exchange rate movements.
Foster's weak performance has occurred despite efforts to restructure its wine division which includes a management reorganisation and an attempt to sell off certain brands and vineyards.
The loss in business comes on the back of the Australian wine industry suffering the worst wine glut in two decades.
Meanwhile good growth has been reported in the Nordic countries and continental Europe which is said to be offsetting the impact of a challenging market in the UK and Ireland.
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