News

AUSTRALIA: Lion Nathan deal makes Cadbury Schweppes exclusive bottler for Oz Pepsi

Most popular

What are Diageo's priorities for the years ahead?

Diageo Performance Trends 2014-2018 - results data

What can the spirits industry learn from Diageo?

Why targeting by gender failed in 2018

MORE

Cadbury Schweppes Plc has today announced it is to acquire Pepsi Cola Bottlers Australia from Australian brewer Lion Nathan, for its subsidiary Schweppes Cottee's.The Australian Foreign Investment Review Board has approved the acquisition, for an undisclosed amount, and Lion Nathan has said it will not be making any write downs on the book value.The deal, expected to be completed by the beginning of October, means that Cadbury Schweppes will become the exclusive bottler for Pepsi Cola brands in Australia, including Pepsi, Diet Pepsi, Pepsi Max, 7 UP and Mountain Dew. Its share in the volume of carbonated soft drinks sold will grow from 15% to 25%, analysts believe.In the last 12 months Lion Nathan, which has an 83.5% stake in PCBA, has sold all its non-core assets, including Pepsi Cola Bottlers New Zealand and New Zealand's Canterbury Malting Co. Analysts say the sale of Pepsi Cola Bottlers could strengthen Montana's bid for New Zealand wine company Corbans, as Lion Nathan holds a 25% stake in Montana.CEO at Cadbury Schweppes, John Sunderland said: "The significantly enhanced brands portfolio will enable Schweppes Cottee's to compete more effectively in the Australian soft drinks market, and become a more efficient and profitable business.Retail sales of carbonated soft drinks in Australia are valued at around AU$4.5 billion and the transaction is expected to increase Schweppes Cottee's volume of carbonated soft drinks by over 60%.The value of Pepsi Cola Bottlers Australia's net assets was AU$102m as at the last balance sheet dated 31 August 1999, and the book value of fixed assets is AU$60m plus working capital.


Related Content

Kirin set to offload Lion Dairy & Drinks

Kirin set to offload Lion Dairy & Drinks...

The Coca-Cola Co takes on Fever-Tree with new Schweppes 1783 mixer range

The Coca-Cola Co takes on Fever-Tree with new Schweppes 1783 mixer range...

Will fat-blocking products save the day for carbonated soft drinks? - NPD insight

Will fat-blocking products save the day for carbonated soft drinks? - NPD insight...

PepsiCo CEO lays ground for North America cola war as Pepsi loses out to Coca-Cola

PepsiCo CEO lays ground for North America cola war as Pepsi loses out to Coca-Cola...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?