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Why Foster's went to water in China

http://www.theaustralian.news.com.au/story/0,20867,19510573-643,00.html

the expression 'went to water'

does it mean fail?

what is the origin of the expression?
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Yes, failing. Probably from ships sinking.
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Hi guys,

I've never heard of 'went to water' as an idiom of any kind. However, I think it's a standard idiom in Australia, and probably New Zealand. I found these instances in the Aussie media.

In sports: New Zealand's greatest asset in this World Cup has been their razor-sharp attacking edge out wide.

But this was blunted in Sydney by Australia''s smothering, sliding defence, that was desperate without ever reaching the panic stage.

The same could not be said for the Kiwi backs, who went to water the longer the match went on. Passes were pushed, balls dropped and wrong options taken.

In politics: He's attacking the Labor Party for being too weak and going to water.

It seems to mean 'losing your nerve' as well as simply 'failing'.

The headline is a reference to Foster's 'turning into water', in other words Foster's business enterprise in China failing/losing its nerve. I see this use of the idiom as also a mild pun about beer and water, since Foster's is a well-known Aussie beer company.

Best wishes, Clive
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thanks.
 Clive's reply was promoted to an answer.
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'went to water'....the literal meaning is derived from ice melting. i.e. you go from a hard state to a soft or weak state.

If two people have a heated argument and one then backs down, he is said to have 'went to water'