TheShout asked Coca-Cola Amatil (CCA) group managing director, Terry Davis, for his thoughts on joint venture partner SABMiller’s acquisition of the Foster’s Group.

“Should the SABMiller acquisition of Foster’s go ahead we believe this is a great deal for CCA and our shareholders as it represents a strong return on our investment.

It will deliver approximately $305 million to CCA and we will also get the opportunity to acquire some Foster’s assets – spirits, RTDs, soft drinks and the Fiji brewery – at very low multiples which means they will be immediately EPS accretive to CCA.

CCA will be able to continue in beer outside Australia in its own right whilst we observe a non-compete in beer for two years in Australia.

We are still in the business of alcohol – it is is a key future growth pillar for CCA.

Our successful Beam spirits and RTD portfolio will not be affected by the SABM/Foster’s deal and we’ll be focusing on growing the Beam partnership, where we produce, sell and distribute Australia’s biggest selling RTD, Jim Beam and Cola, and we also have a large portfolio of premium brands.

Until the SABMiller / Foster’s deal goes through our teams will be continuing to service our licensed customers as usual with our full portfolio.”

Pacific Beverages, a joint venture between SABMiller and Coca-Cola Amatil, commenced brewing new brands and SABMiller products at a new Bluetongue brewery in Warnervale last year.

For details on the future of Pacific Beverages, click here.

The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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