AUS: Coca-Cola Amatil agrees distribution deals with Modelo, Carlsberg, Molson Coors

By | 16 May 2012

CCA has signed distribution deals with three  major brewers

CCA has signed distribution deals with three major brewers

Coca-Cola Amatil (CCA) has signed “multi-year” agreements with three major brewers to distribute a wide portfolio of beer brands across Papa New Guinea, Fiji and the Pacific Islands. 

The company said yesterday (15 May) that it has agreed with Grupo Modelo, Carlsberg and Molson Coors to start distribution of  a “large portfolio” of brands from mid-2012, subject to regulatory approval. Some brands will also be distributed in New Zealand as part of the deals.

Terry Davis, CCA’s group managing director, said: “Our new partnerships combine some of the world’s leading international premium beer brands with CCA’s large-scale customer and distribution capabilities.”

He added the partnerships will “complement our growth plans with the potential acquisition of Foster’s Fiji brewery and distillery”, which makes Fiji Bitter and Bounty Rum.

The group also confirmed it is currently getting regulatory approval for its acquisition of Foster's Fiji Beer & Spirits business for around AUD$62m. 

The company is also still expected to re-enter the Australian beer market late next year, once the terms of the sale of its previous beer business to SABMiller has expired. Fiji Bitter will be sold by CCA in Australia, Davis said yesterday, as well as Bounty Rum.

The news came off the back of a trading update, which said CCA expects to generate around 4% to 5% growth in net profits for the first half of 2012, before significant items. 

Davis added: “Given the difficult trading and consumer environment we are pleased with the operating performance in the year to date. 

Indonesia and PNG have experienced a “very strong start to the year” he said, while momentum in the Australian business is improving after a weather-affected summer trading period.

To read the trading update, click here.

Expert analysis

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Sectors: Beer & cider

Companies: Amatil, Modelo, Carlsberg, Molson Coors, Foster’s, SABMiller

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