Australia: Foster’s acquisition by overseas brewer a result of lack of innovation – Coca-Cola Amatil CEO

Coca-Cola Amatil chief executive Terry Davis has blamed the loss of Foster's to overseas owners on the lack of innovation by the brewer, The Sydney Morning Herald reported on October, 5.

Mr Davis said if the $12.3 billion takeover of Foster's by Anglo-South African brewer SABMiller is successful it will mean by next year 90 per cent of all beer consumed in Australia will be foreign-owned.

Lion Nathan, the nation's second biggest brewer, is owned by Kirin of Japan.

Speaking at a business lunch on October, 5 Mr Davis said he believed Australia still was in the midst of the global financial crisis, with economic uncertainty overseas and the proposed carbon tax in the country destabilising confidence.

He said without a circuit breaker the Australian economy could continue to limp along for some time.

Mr Davis said Australians were worried about the future if the economy and business. He added that he believed the federal government did not understand the impact the high Australian dollar was having on the economy.

Consumers were also suffering from low confidence and were being swayed by the string of sales and promotions being offered by retailers.

He said when travelling overseas recently he had heard other business people talk to him about "sovereign risk" in Australia, something he had not witnessed before.

Mr Davis added that Coca-Cola Amatil would not repeat the mistakes of Foster's by taking its eye of innovation, vowing Coca-Cola Amatil would continue to reinvest in its business.

He said the decline in beer consumption year after year against better growth rates for new products such as cider proved innovation would be rewarded by the market.

He said Foster's didn't reinvest its profit back into its business and customers.

05 October, 2011