This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Foster's Isn't Australian For Anything Now

MELBOURNE, Australia ( TheStreet) -- Foster's Lager is now about as Australian as Outback Steakhouse.

SABMiller -- aka MolsonCoors (TAP) or MillerCoors, depending on what corner of North America you inhabit -- agreed this morning to buy Australian brewer Foster's Group Ltd. and its mini-oil-drum-sized cans of lager for $10.2 billion. This is a huge deal in Australia, where Foster's still accounts for more than 50% of the nation's beer drinking through its flagship, Victoria and Carlton labels. As part of the deal, SABMiller promised not to move Foster's headquarters out of Melbourne despite flagging beer sales.
SABMiller's $10.2 billion buyout of Foster's chugs the notion of national beer identity.

Here in North America, it means absolutely nothing. The Foster's consumed here is brewed by Molson under license and is just a cog in London-based SABMiller's beer-lubricated branding machine, which poured out 61.5 million barrels and put $668 million in the till in North America alone last year. A good portion of that revenue came from "American" Miller, Coors and Keystone products and "Canadian" Molson and Carling beers, but also from "Dutch," "Indian" and "Italian" beer lines.

MolsonCoors' main competitor, Belgium-based Anheuser-Busch InBev (BUD), is just as adept at putting colorful international costumes on its multinational mercenary stable of malted beverages. The beer giant did $36.3 billion in worldwide business last year while slinging 101.7 million barrels of suds in the U.S. alone. Budweiser, a beer that's made itself a yellow, fizzy manifestation of all things American, has been roughly as red, white and blue as french fries and waffles since A-B merged with InBev in 2008.

Netherlands-based Heineken International's worldwide holdings, meanwhile, culls beers from Italy, the Czech Repubic, Poland, Spain and Bulgaria to fuel the $22.4 billion worth of global revenue it raked in last year. We'd tell you straight out what beers London-based Diageo (DEO) owns, but we'd still like to show our faces in South Boston on St. Patrick's Day.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BUD $124.97 -0.69%
DEO $108.75 -0.44%
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs