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Beverages company Foster's Group Ltd (ASX:FGL) has confirmed that it is working towards demerging its beer and wine businesses.

Chairman David Crawford says that the beer and wine businesses operate in separate market segments. As such Foster's continues to believe that a demerger would improve transparency as well as strategy and capital flexibility for the separated businesses.

If a demerger proposal is recommended by the board and approved by shareholders, Mr Crawford advises that it can be achieved in the first half of next year.

In September Foster's said it had rejected an unsolicited proposal to purchase the wine assets of Treasury Wine Estates for between $2.3 billion and $2.7 billion.

Foster's Group booked a $463.4 million net loss in fiscal 2010.