Blog: Beery future for Coca-Cola Amatil?
James Wilmore | 16 May 2012
I spy some interesting manoeuvring by Coca-Cola Amatil (CCA).
Earlier today (16 May) the group announced that it has signed distribution deals with three major brewers – Grupo Modelo, Carlsberg and Molson Coors – to distribute their brands in some of the markets CCA is currently allowed to sell beer in, Papua New Guinea, Fiji and the Pacific Islands.
The company will have to wait until the end of next year before it can once again start to sell and distribute beer in its home market of Australia. CCA group MD Terry Davis suggested to reporters in Sydney yesterday that Foster's Fiji Bitter would be one product that it will sell there.
But, the agreements with Modelo, Carlsberg and Coors offers CCA an opportunity to become a major player in the Australian beer market.
With Davis only predicting slim volume growth of 1% to 2% in its Australian soft drinks and spirits business in the first half of 2012, the idea of bringing more beer brands to the market could prove attractive.
Although CCA may want to take into consideration that beer consumption in Australia is at a 65-year low.
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