In a shareholder trading update, Coca-Cola Amatil’s Group Managing Director, Terry Davis, said the company is confident about developing its alcoholic beverage business.
The multi-year agreements with Grupo Modelo, Carlsberg and Molson Coors will see Coca-Cola Amatil distribute a large portfolio of premium beer brands across Papua New Guinea, Fiji and the Pacific Islands with some brands to be distributed into New Zealand.
Mr Davis said, “Coca-Cola Amatil will now have a stronger beverage portfolio offering across the Pacific region and these partnerships will complement our growth plans with the potential acquisition of Foster’s Fiji brewery and distillery which makes Fiji Bitter and Bounty Rum.”
• Grupo Modelo’s brands include the best-selling Corona Extra, Pacifico and Negra Modelo with distribution to include Fiji, PNG and Pacific Islands.
• The Carlsberg agreement is for the Carlsberg brand with distribution to include Fiji, PNG and Pacific Islands (excluding New Caledonia, Guam and American Samoa).
• Molson Coors brands include Coors Light, Carling, Caffrey’s, Cobra with distribution for New Zealand, PNG, Fiji and Pacific Islands excluding Samoa.
Coca-Cola Amatil said it will commence distribution of all brands from mid 2012 following receipt of regulatory approvals.
Coca-Cola Amatil forecasts profit for first half of financial year
Providing an update at its Annual General Meeting, Coca-Cola Amatil forecasted a four to five per cent growth in net profit for the first half to 30 June 2012.
Mr Davis said the Australian business expects to deliver an improved volume and revenue performance in 2012 with volume growth of one to two per cent expected for the first half of the year.
“With significant revenue generated from cold beverages, the business was heavily impacted in January and February 2012 by the wettest summer in over 50 years which affected NSW and Queensland throughout the peak trading season.
“In addition, the macro environment in Australia remains challenging with weaker demand particularly notable for our business in key holiday destinations along the Eastern seaboard.
“We enjoyed a solid Easter trading period and price realisation in the year to date has been positive. Looking forward, there is a strong consumer and trade promotional programme in the lead up to the Olympics, with Coca-Cola a key sponsor.”
