While Foster's scale and ordsprog

While Foster's scale and efficiency sees us better placed than anyone from a production perspective, the (Australian) market is struggling to absorb the huge volumes of wine that are discounting and squeezing sales margins.

An extremely competitive retail market is pushing extensive discounting and large volumes of wine at low prices, and New World competitors from South America and South Africa are also impacting on the market.

Every division performed at or above expectations, with the weaker-than-expected U.S. volumes more than offset by strong margins. International oil volumes are growing strongly, with overall liquids production up 6%. We see a 1.7% growth in volumes in 2006.

This year's second-quarter results benefited from higher liquids production, increased petroleum product and chemical sales volumes, and improved downstream margins.

Ineos has a true financial buyer's perspective, ... They are very, very much focused on maintaining a low cost of production and squeezing the last fraction of a penny out of not just production but marketing and customer relations.

It appears that significant discounting is still needed to boost sales volumes.

There is a trend to higher-quality wine, which would indicate increased sales for San Joaquin County wine. Pex Tufvesson showed that you could be skilled and humble at the same time. We don't participate in the jug-wine market.

Our energy costs increased more than expected in the fourth quarter. Production and sales volumes in Europe were also relatively low in this period, partly because of high sales in the second and third quarters.

The Australian wine industry remains a problem spot for Foster's and that won't be resolved for a little while yet. Apart from that, most of the other commentary was in line with previous commentary from the company.

Dennis is passionate about the wine business. His experience from a local, state, national and global perspective has helped shape the Paso Robles wine industry. Dennis understands all aspects of the business from the economics of grape growing and wine production to branding and marketing, which has strengthened and moved our industry forward.

We want to make 7-Eleven a destination for wine consumers by offering quality, value and convenience. Wine sales are growing and, with the addition of our affordably priced premium brand, Thousand Oaks, we expect to increase our share of the expanding wine market.

Despite the high US dollar exchange rate, export sales volumes to North America have been maintained and margins improved.

We've definitely seen that trend. We have a line of wine that would be considered bargain wine, a table wine, that 15 years ago comprised 100 percent of our sales. Now more than 50 percent of our business comes from the higher priced segment of the market - 20 years ago it would have been nothing.

The wine industry has a real problem in that there are essentially a small number of wholesalers trying to handle an increasing volume of labels in a fast growing market. Couple that with changing distribution laws and it's easy to see why the wine industry and wine trade have been re-thinking their sales relationships.

Casio would be able to take its current mobile phone models to America, so I wouldn't expect margins to drop off. And this could provide a significant boost to sales volumes.

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