News: Fosters Group renames wine unit

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Foster's Group Ltd (ASX:FGL) says that Treasury Wine Estates will become the new identity of its global wine business, following the company's decision to split its beer and wine divisions.

The company has struggled with its strategy to mix its beer and wine businesses with analysts estimating total writedowns for the wine unit at up to $3 billion.

Under the new name, 4,000 global employees will work to build the international wine business and bring together wines from Australia, California, France, Italy and New Zealand.

Treasury Wines will be made up of 12,000 hectares of vineyards and 20 wineries.

Australia's largest brewer says the split won't formally
happen until next year and it is aiming to achieve an internal target of making $84 million in earnings before interest and tax in the 2011 financial year.

In 2009, Foster's Group posted a $438 million net profit, which was about half the result recorded in 2007.