Carlton and United Breweries (CUB), the Australian beer, leisure and spirits division of Foster's Group (Foster's), announced on April 14, 2003 that it expects to realize annual gross efficiency gains of up to $100 million within the next five years, as a result of the recent operational review of its businesses, Foster’s reported in a press release.

For accounting purposes, a one-off charge of $150 million will be taken in fiscal 2003. This charge provides for expected restructuring costs as well as the maximum realizable loss on the sale of the Kent Brewery site and related assets.

The review of business operations covered CUB's three businesses - Australian beer, Australian Leisure and Hospitality (ALH) and Continental Spirits.

The cash outflow required to achieve gross savings of up to $100 million per annum, is anticipated to be a maximum of $230 million. This cash requirement includes $170 million in capex for capacity increases and $60 million to cover expected restructuring costs. The cash outflow is expected to occur over the next several years and will be offset by proceeds from the sale of the Kent Brewery site, which will be a minimum of $75 million.

14 April, 2003