Transcript of 1998 Foster's Brewing AGM
July 9, 2008
Here is an edited transcript of our exchanges from the 1998 Foster's Brewing Group AGM held at the Concert Hall in Melbourne.
Stephen Mayne: Mr Chairman I'm a working journalist in Sydney, I'm the business editor of The Daily Telegraph. As an exercise for a series that we're doing I've bought shares in about 50 companies and am going around attending some meetings asking a handful and questions and then just writing it up as a perspective of an active investor, so just a couple of quick questions.
With the poker machine business we've now got more than 5000 pokers machines, we're the biggest poker machine company in the country, as Ted said. Crown and Star City last week are disclosing their daily revenue from their machines, I think Crown's at 246 and Start City has got 260. What are our figures like and is there any chance they can be lifted?
Chairman John Ralph: Well, I think the consequence of buying the AustHotel group will have the effect of lifting the revenue numbers. Do you have that number, Ted?
CEO Ted Kunkel: No Chairman, I don't have that number. We will get that number for you. I don't have that at hand.
John Ralph: It's not the overall revenue number that I want.
Ted Kunkel: No, no I know what you want but I don't have the number that you're looking for at hand. We will get it for you if you'd like to contact the Company Secretary after the meeting we will make arrangements to get the number to you.
Stephen Mayne: Ted's talked about turning us into the leisure company in Australia. Where do casinos fit into that picture? Obviously we are running a lot of mini casinos with all the pubs but there's a lot of casinos with tables on the market at the moment, are we looking at any of them. Crown is in distress are we looking at that? Adelaide Casino is in distress, Cairns casino is in distress, obviously there's a lot of opportunities there, are we looking at them?
John Ralph: No we're not looking to take over a Casino. Mr Kerry Packer might do that.
Stephen Mayne: Mr Chairman just a quick question on the Cellarmaster acquisition. I know you should always discount the comments of rivals, but the managing director of BRL Hardy, Stephen Miller, made the comment the other day that the last thing he would be doing would be going into competition with the major retailers in Australia as in Coles and Woolworths.
Their sales growth in the liquor business has certainly been going through the roof the last few years. Now that Cellarmaster is in direct competition with the major retailers is that affecting our relationship with them and what is the long term strategy to increasingly or decreasingly rely on the major retailers and do it ourselves?
John Ralph: I think the answer there in terms of the results of going to Cellarmaster have shown in the profit results. But the relationship with those major retailers of course is extremely important to us both in our beer and wine businesses and efforts are made to maintain good relationships. They understand the strategy that we've followed but it is not affecting our total sales. Our share of market as I've said, is increasing in beer and the results in Australia and overseas in respect of our wine business is also been strong. We have to have a many faceted strategy if we're going to be a major player in the international market and this is another avenue in which we are expanding, particularly into Europe at the present time.
John Ralph: If you have another question, yes.
Stephen Mayne: Nuno D'Quino made a comment the other day that if the Kent brewery was to close it would be because of the State government and Sydney City Council in Sydney. Is this just an idle negotiating tactic or is there a serious threat that you are going to close the Kent brewery in Sydney?
John Ralph: Mr DiCuno hasn't told me that he intends to close the Kent brewery and he's looking rather perplexed at your question. He is in the front row and if you would like to grab him after the meeting you could ask him that question yourself.
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