Foster's teams up with Southern Wine & Spirits

US: Foster's Wine Estates has announced long-term distribution agreements with Southern Wine & Spirits in three US markets.

Southern Wine & Spirits will gain the exclusive rights to sell Foster's global portfolio of wines in California, Illinois and Florida. Southern currently distributes Foster's wines in each of these states but has shared the portfolio with other distributors and Foster's own self-distribution.

The five-year agreements mark the completion of phase one of Foster’s route to market initiative, launched after its wine review last year.

Foster's managing director Stephen Brauer said: "We look forward to continuing our strong partnership with Southern under these new agreements that will deliver superior performance in each of these key states.

Wayne Chaplin, president & chief operating officer of Southern Wine & Spirits of America said: "We are truly honored and thrilled to be Foster's exclusive distributor partner in the critical markets of California, Florida and Illinois going forward.

"We look forward to partnering with Foster's to realise their route to market goals of sustainable brand growth, in-market execution and portfolio premiumisation.”

The new contracts become effective July 1, 2010.