By Andrew Starke
In a one-on-one interview, Coca-Cola Amatil (CCA) managing director, Terry Davis, explains how Pacific Beverages – the company’s alcoholic joint venture with SABMiller – has been a major contributor to its 2009 results.
CCA delivered a 16.4 percent rise in full year net profit, helped by warm weather and price increases, and in-line with market expectations.
“CCA has continued its strong performance in what were challenging trading conditions,” said CCA managing director, Terry Davis.
“The significant investments made by the company over the last three years in capacity, operational capability and cold drink coolers, as well as successful new product and package innovation, continues to distinguish the performance of CCA from its food and beverage peer group.”
CCA’s alcoholic beverage operations contributed over 30 percent of the full year earnings growth of the Australian beverage business.
In an exclusive interview with TheShout, Davis said Pacific Beverage’s beer brands had delivered strong volume growth of almost 50 percent for the year and now account for over nine percent of the Australian premium packaged market.
Video 1: Davis on 2009 for the premium beer sector
However, Pacific Beverages reported a small loss overall for 2009, due to some launch and restructuring costs.
Video 2: Davis on the launch of Peroni Leggera
Davis expects the new Bluetongue brewery to significantly add to the company’s production capacity. The $120 million brewery in NSW is expected to come online in May.
Video 3: Davis on the increased capacity that the Bluetongue Brewery will provide
Russian Standard, a premium vodka, was launched in Australia in July and has quickly captured over 15 percent of the local premium vodka market.
Video 4: Davis on the rise of Russian Standard vodka
However Davis expressed concern at the local RTD sector, which has faced increased taxation and government scrutiny.
Video 5: Davis on RTD tax and the Henry Tax Review
He predicts that the road ahead for commercial beer labels may also be tough as they lose ground to premium brands.
Video 6: Davis on the present advantage that premium beer brands have on commercial rivals