Australia's Foster's Group says it plans to transfer 13 of its less profitable wine brands into a joint venture with Vok Beverages, which will comprise a key component of the restructuring of its wine unit.

Foster's which is the world's second-largest winemaker by sales first flagged the restructuring of its business in February after its failed attempt to sell it.

The company said it would sell off or close 37 of its more than 80 brands in order to focus on better-margin, better-known brands such as Penfolds, Lindemans and Rosemount.

According to David Dearie, managing director of Foster's wine unit in Australia and New Zealand, the move would substantially complete the rationalisation of the Australian wine brands announced as part of the wine strategic review outcomes in February.

With the joint venture Foster's would be able to focus on wine making, distribution and marketing of its core portfolio.

The brands that will be taken over by the joint venture are Queen Adelaide, Half Mile Creek, Minchinbury, Matthew Lang, Andrew Garrett, Maglieri of McLaren Vale, Rouge Homme, Great Western, Cartwheel, Fishers Circle, Galway Pipe, Boronia and Yarra Ridge.

Foster's found that its 80 brands or varieties of drink marketed under a single banner left customers confused and the brands were also eating into each other's sales.

Foster's decade-long expansion into wine in Australia and in the US has come at a cost of more than $46 billion. It had paid $3.2 billion of Southcorp, then Australia's largest wine maker.

Foster's said it will hold a 50-per cent stake in the joint venture and said the equity investment would not substantially impact earnings.

Earlier this week, the wine maker said its Q1 performance had been in line with expectations after adjusting for currency and its cost-cutting programme was making progress.

Australia's biggest brewer has been struggling to turn around the fortunes of its wine division writing down $278 million for vineyards, brands and inventory in its last annual results.

Foster's had said at is annual general meeting to its shareholders that it was positioning itself to counter the impact of a rising Australian dollar, respond to the competition from clearskin and private label wines and maintain the Australian reputation for well-priced, good quality wines in the 2010 fiscal year.