FOSTER'S STARTS SHRINKING

IT'S ALL happening at Foster's as the big Australian starts acting on the recommendations contained in its February review. In April it placed its north-east Victorian winery, the historic Bailey's of Glenrowan, up for sale. The vineyard, founded in 1870, is one of 36 "non-core" vineyards across Australia and California that will be let go. Also to be closed is the Denman winery in the Upper Hunter Valley.

Foster's has now identified some of the 37 wine brands it intends to retire. They include Ben Ean, Liebfrauwine and Kaiser Stuhl. The company plans to make 300 positions redundant throughout its wine operations but it is the planned divestment of 5000ha of vineyards in Australia as well as in California that has attracted the greatest criticism from within the industry. "It seems to us that what Foster's should be doing, where it can, is retiring vineyards and selling water back to the government to improve the Murray Darling," says Mark McKenzie, executive director of Winegrape Growers' Australia.