The largest and top-ranked brewer in Australia, Foster's Group Ltd. reported a decline of 13.5% in its earnings for the year's first-half, mainly on the back of loss of market share in beer and wine profits taking a plunge due to the strong value of the Australian Dollar and drinker shifting to cheaper wines.

The manufacturer of popular brands like Beringer, Penfolds and Wolf Blass wines, however, did assure that the cost saving plan was right on track and the company can safely see benefits of separating its beer and wine units.

"Probably the biggest weakness is in the beer business, which is surprising. The beer market in Australia is very strong at the moment and yet they show a 1 percent volume decline. That's disappointing", said Fortis Investment partner Theo Maas.

For the period of six months up-to December 31, 2009, Foster's posted earnings of A$355.7 Million ($316 Million), well below the estimate of analysts which stood at A$391.4 Million. Revenue also dropped by 4.4%.

"Reduced promotional activity in the first half... and a small degree of disruption from bedding down the new sales structure led to a small loss in market share", said Chief Executive Ian Johnston.