Foster's offloads brands in wine overhaul

MELBOURNE, Oct 23 (Reuters) - Australia's top brewer Foster's Group Ltd (FGL.AX) will transfer some wine brands into a joint venture, as part of an overhaul of its struggling A$4 billion ($3.7 billion) wine business, the company said on Friday.

Foster's, which has already written down A$278 million for vineyards, brands and inventory in its last annual results, is trying to improve the performance of its wine business, which has been a drag on its earnings.

However, the company decided not to sell the wine business in a weak market.

Foster's said it would transfer 13 Australian wine brands, including Great Western, Queen Adelaide and Yarra Ridge, into a joint venture with Vok Beverages. It said this would not have a material impact on earnings.

"This substantially completes the rationalisation of the Australian wine tail brands announced as part of the wine strategic review outcomes in February," the company said.

Last week, Foster's sold eight vineyards in South Australia. ($1=1.078 Australian Dollar) (Reporting by Victoria Thieberger; editing by Denny Thomas)