E-Malt.com News article: Australia: Coca-Cola Amatil keen to be back in beer business by the end of 2013

Coca-Cola Amatil (CCA) hopes to return to the beer market in Australia at the end of 2013. CCA group managing director Terry Davis said on February, 22 that CCA had spent the last four years developing expertise in the manufacturing, sale and distribution of alcoholic beverages, news.com.au reports.

"This does give us a uniquely independent platform for the future distribution of domestic and international premium beer brands," Mr Davis said.

"I certainly have high expectations to be back in the beer business in Australia at the end of next year (2013)."

In December 2011, CCA said it would sell its 50 per cent share of its Pacific Beverages joint-venture brewing operation in Australia and New Zealand to its brewing partner, SABMiller, for A$305 million.

SABMiller agreed to acquire the CCA stake in a simultaneous deal to SABMiller's acquisition of brewer Foster's Group.

Foster's competed with Pacific Beverages.

Under the terms of the sale to SABMiller, CCA was restrained from selling, distributing or manufacturing beer in Australia until the end of 2013.

But CCA has the right to acquire all or part of Foster's spirit and ready-to-drink (RTD) business, which includes the Cougar, The Black Douglas and Karloff brands.

CCA also has the right to acquire Foster's Australian non-alcoholic beverages business - there are several labels under the key Cascade brand - and Foster's Fijian brewery and beverages business.

Mr Davis said any potential acquisition was subject to a process of due diligence.

"We're still waiting on a lot of information from SABMiller and the due diligence process, but we think if we were to decide to buy some or all of the assets that the maximum outlay would be $200 million," Mr Davis said.

Any acquisition would be expected to be completed by the middle of 2012.

Mr Davis said that although CCA was restrained from participating in the Australian beer market until the end of 2013, it was not restricted from manufacturing and distributing beer in other markets.

Mr Davis said CCA may even consider another brewing venture.

"I don't think we've discounted going back into brewing at all, but that's not a decision that we need to make now, and we've got a few options available to us.

"It's something to which we wouldn't say 'yes', but we're not saying 'no' either."


22 February, 2012