South Pacific: Coca-Cola Amatil secures South Pacific distribution agreement with Grupo Modelo, Carlsberg, and Molson Coors

Coca-Cola Amatil (CCA) has entered into new beer distribution agreements for the South Pacific, Supply Chain Review reported on May, 16.

CCA announced in a trading update on May, 15 that it had entered into multi-year agreements with Grupo Modelo, Carlsberg and Molson Coors to distribute beer across New Zealand, Papua New Guinea, the Pacific Islands, and Fiji.

A CCA spokeswoman says the beer distribution will start in mid-June, but says it is too early to comment on how the agreements will affect CCA’s supply chain.

“The ink has only just dried on the agreements so it is probably a bit early to start talking about logistics and supply chains,” she says.

“We are putting all that stuff in place now.”

CCA’s Managing Director Terry Davis says the new partnerships will combine some of the world’s leading international beer brands with CCA’s distribution capabilities.

“CCA will now have a stronger beverage portfolio offering across the Pacific Region and these partnerships will complement our growth plans with the acquisition of Foster’s Fiji brewery and distillery which makes Fiji Bitter and Bounty Rum,” Davis says.

Davis says CCA expects to generate a 4-5 percent profit for the first half of 2012, with the Australian business expected to deliver volume growth of 1-2 percent.

“Indonesia and PNG have experienced a very strong start to the year, momentum in the Australian business is improving after weather affected summer trading period and Project Zero initiatives continue to drive productivity improvements across the group.

“With the impending acquisition of the Fiji beer and spirits business, together with the establishment of beer distribution agreements in the South Pacific, we remain confident about developing the many opportunities we have for our alcoholic beverages business.”

16 May, 2012