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RNS Number:5047B
Foster's Brewing Group Ld
3 April 2001

Beringer Blass Wine Estates expands global ultra-premium wine portfolio with
purchase of Matua Valley Wines in New Zealand

Beringer Blass Wines Estates, the world's leading premium wine group and a major
division of Foster's Brewing Group, today announced an agreement to purchase 51%
of the shares in New Zealand boutique wine producer, Matua Valley Wines, for
$NZ11.2m (A$9.3m).  

Regarded as one of New Zealand's top six wine producers, Matua Valley Wines
(Matua) sold 135,000 cases of premium varietal wines in fiscal 2000. Exports,
representing about 35% of sales, have been focused on Europe and Australia, with
minimal penetration to date in the rapidly growing US market for New Zealand
wines. 

"With the benefit of our global distribution network and marketing support, we
see a great future for boutique, New Zealand ultra-premium wine brands such as
Matua, Ararimu and Shingle Peak," said Mr Terry Davis, Managing Director of
Beringer Blass Wine Estates (Beringer Blass).  

"We have great confidence in the international potential of top quality New
Zealand wines, particularly in the US. New Zealand's distinctive Sauvignon Blanc
and Pinot Noir wines are acclaimed around the world and we can now offer our
customers some of the most outstanding examples." 

"We are delighted that founding winemakers, Ross and Bill Spence, who are highly
respected in New Zealand wine circles will continue with us as we develop the
market potential of their wines. We're also delighted that Mark Robertson,
Matua's chief winemaker, is looking forward to an outstanding 2001 vintage in
both yield and quality." 

Regarded as the "founding father of New Zealand Sauvignon Blanc", Ross Spence
planted the country's first vines of this variety near Auckland in 1974. He is
also the immediate past Chairman of the New Zealand Wine Institute. Chief
Winemaker Mark Robertson was named Winestate magazine's 1998 New Zealand
Winemaker of the Year. 

Set among rolling hills and with picturesque gardens, Matua's winery and visitor
centre is located 30 minutes from the centre of Auckland. Offering vineyard
experience tours, it is considered to be one of the region's top winery
destinations. 

Appealing to a premium, niche market, New Zealand wines' international success
has grown strongly.  

According to Statistics New Zealand figures for the year ended June 2000, the UK
maintained its lead as the largest export market for New Zealand wines.  

In that period, however, the US overtook Australia to become the second most
significant export market, with the volume and value of its New Zealand wine
sales almost doubling. Data compiled by MKF Research of California shows that
New Zealand wines comprised the fastest-growing category for imported wines in
the US in calendar 2000. 

To date, the success of New Zealand sales in the US has been based on white
varieties, which account for more than 90% of this market category.  

The growing appeal of Pinot Noir in America represents a key emerging market
opportunity for the Matua Valley Wines range, given that New Zealand is widely
acknowledged as one of the few countries to excel with this temperamental grape
variety. In the US, Pinot Noir attracts the highest average bottle price
(US$10.38) and among the strongest annual sales growth (20%) of all wine
varieties, according to Nielsen foodstore sales data for the 12 months to
February 2001.  

Matua has invested strategically in vineyard development, enabling Beringer
Blass to pursue export growth potential. Approximately 50% of its grape intake
is sourced from owned vineyards. As its developing vineyards begin yielding,
Pinot Noir will double as a proportion of its annual grape intake by 2005.
Sauvignon Blanc grapes will continue to account for about one third of the
intake. 

Subject to New Zealand Overseas Investment Commission approval, the purchase
agreement also gives Beringer Blass the option to acquire the remaining 49% of
Matua over the next three years.

Further Information

Media:

Australia, Asia Pacific, Europe: Rell Hannah, Director Corporate Affairs
Telephone + 61 (0)3 9690 9966, 61 (0)419 369 075
United States: Mora Cronin, V-P Public Relations & Corporate Affairs
Telephone + 1 707 963 8989, ext. 2243.

Analysts:

Domenic Panaccio, V-P Capital Markets, Telephone +61 3 9633 2641

www.beringerblass.com
www.matua.co.nz

Beringer Blass Wine Estates is the world's leading premium wine group. Its 19th
century winemaking heritage stems from the pioneering achievements of the
Beringer brothers in California's Napa Valley and the Chaffey brothers in the
Murray River region of Victoria, Australia. From these beginnings grew two great
winemaking companies, Beringer Wine Estates and Mildara Blass Limited. Their
union in October 2000, as the wine division of Foster's Brewing Group, created a
diverse, global company with unrivalled capability in premium winemaking, brand
management, and international distribution. Employing 4,000 people across the
world, Beringer Blass sells some 14 million cases of premium wine annually, and
packages a further 12.5 million cases on behalf of third party clients.


Background information

Matua Valley Wines 

Core brands: Matua, Ararimu, Shingle Peak. In New Zealand, average retail bottle
prices range from $NZ10.00 for the affordable Settler Series to $NZ39.95 for the
ultra-premium, benchmark Ararimu wines which are only produced in exceptional
years. In export markets, Ararimu wines retail for around $US47, 16 pounds
sterling or $A35. 

Ownership: Founding winemakers Ross and Bill Spence. Regarded as the "founding
father of New Zealand Sauvignon Blanc", Ross Spence planted the country's first
vines of this variety near Auckland in 1974. He is also the immediate past
Chairman of the New Zealand Wine Institute.

Chief Winemaker: Mark Robertson, the Winestate magazine's 1998 New Zealand
Winemaker of the Year.

Case sales (fiscal 2000): 135,000 (65% domestic, 35% export)

Turnover (fiscal 2000): NZ$12m (A$10m)

Markets: UK and Ireland are the main export markets, with Australia and the
remainder of Europe also significant. To date, export sales to the US have been
minimal. 

Assets: 
- Four wholly owned premium vineyards in Marlborough, Hawkes Bay and Waimauku   
  (77 hectares).

- 50% interest in two premium vineyards in Hawkes Bay and Gisborne (54          
  hectares).

- 100% of a winery and visitor centre located 30 minutes from the centre of     
  Auckland (crush capacity of 2,000 tonnes p.a). 

- 25% interest in Rapaura Vintners, a contract winery in Marlborough, where     
  Matua Valley Wines's winemakers supervise production of their Marlborough     
  wines.

Employees: 31

New Zealand wines 

Sauvignon Blanc is now New Zealand's second most widely planted varietal,
representing almost one quarter of all vines. Unique and immediately
identifiable in style, New Zealand Sauvignon Blanc has attracted international
acclaim.

According to Wine Spectator, June 1999: "With 89% of the (New Zealand) wines
tasted scoring 85 or higher on the Wine Spectator 100 point scale, if you see a
New Zealand wine on the shelf, you can't go far wrong... New Zealand's
reputation rests on Sauvignon Blanc. Its wines stack up well against Sancerre or
Pouilly Fume, in which the French excel with Sauvignon Blanc, and make most US
versions seem comparatively bland." 

New Zealand is also acknowledged as one of the few countries to produce
world-class, highly sought-after Pinot Noir. This grape variety relishes cool
temperatures and low rainfall and thus performs with distinction in the
Wellington region and most South Island regions. Cooler, high-altitude sites in
Hawkes Bay have also found success with this temperamental grape. Wines from
Martinborough have earned the highest international accolades. 

New Zealand wine exports reached NZ$168.6 million and 19.2 million litres in
2000, a rise of 15% in volume and 35% in value on the previous year. Exports
accounted for over 32% of the country's total wine sales in 2000. Annual wine
exports are projected to be 40 million litres and $375 million in 2005. The
three largest markets, the United Kingdom, the United States of America and
Australia, now comprise 80% of New Zealand's international wine sales, and are
expected to continue to dominate exports for the foreseeable future. 

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