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News 17.12.2012

Coca-Cola Amatil Acquisition Of PT San Miguel Indonesia Food And Beverages Bottling Facility In Indonesia

CCA has acquired the PT San Miguel Indonesia Food and Beverages non-alcoholic beverage bottling assets in Jakarta…

CCA has acquired the PT San Miguel Indonesia Food and Beverages non-alcoholic beverage bottling assets in Jakarta, Indonesia following San Miguel’s decision to exit the production of non-alcoholic beverages in Jakarta. Commissioned in 2006, the assets include a 20,000 sqm purpose built beverage production facility which includes a high speed PET bottling line and a 5,000 sqm warehouse. In addition, the 100,000 sqm land parcel acquired provides a valuable land bank for future expansion.

CCA’s Group Managing Director, Terry Davis said, “The acquisition of this large and modern facility is a very important acquisition for CCA as it fast tracks our expansion plans for the Jakarta region, providing a well located complement to our Cibitung manufacturing operations.

“In addition to the site’s existing high-speed PET bottling line, we will install an additional carbonated soft drink PET line, increasing our Indonesian PET production capacity by 20 % over the next 12 months. The facility has the potential to add a further three beverage production lines which could increase Indonesian PET capacity by a further 35-40 %, providing the business with an immediate low cost expansion option in the key densely populated West Java region of Indonesia.”

CCA expects to spend approximately A$45 million on the acquisition of the existing San Miguel facilities and on expenditure to further develop site capacity over the next 12 months.

Acquisition Of Land And Warehousing Facility In Lae, Papua New Guinea

CCA is currently completing the acquisition of an existing 18,000 sqm warehousing facility in Lae for A$28 million. Mr Davis said, “The acquisition of this warehousing facility is strategically important for our fast-growing PNG business as it adjoins our existing manufacturing and distribution operation. The acquisition provides us with much needed warehousing space to guarantee future expansion capacity for both manufacturing and distribution in PNG for the next 10 years.”

Progress In The Development Of CCA's Alcoholic Beverages Strategy

CCA is pleased to announce that it has entered into a long-term exclusive agreement to distribute Rekorderlig cider in Australia from 1 January 2014, post the expiry of its restraint agreement with SABMiller not to sell, distribute or manufacture beer or cider in Australia until 16 December 2013. Alcoholic cider is the fastest growing alcoholic beverage category in Australia, growing at over 20 % per annum, and generating annual retail sales of over $550 million. Rekorderlig cider is produced in Sweden and is the Number 1 brand by value in the off- premise sector in Australia.

Managing Director Australian Beverages, John Murphy said, “CCA is the leading non-alcoholic beverages and spirits partner for the licenced trade and the future partnership with Rekorderlig will materially strengthen our brand portfolio in this important channel. By leveraging CCA’s large scale sales and distribution expertise, I believe we will be able to further strengthen Rekorderlig’s market leading position.”

The newly named Paradise Beverages (Fiji) Limited (previously Foster’s Group Pacific Limited) is delivering ahead of expectations. In the 10 weeks since acquisition CCA has commenced marketing Fiji Bitter Draught in Fiji, launched a new low-carb beer Vailima Pure, launched a new premium 12 year old rum from the Fiji Rum Company and a new RTD Bounty Mojito. Work has also commenced on a multi-year brewery upgrade.

Mr Murphy said, “We are delighted with the opportunities created by the acquisition, its potential exceeds our initial plans for the business. The upgrading of the facilities will give us more production capacity and the ability to produce export quality beer and we have launched a number of new products in the local market already.

“In addition, we have commenced distributing premium beer Corona in Fiji and Coors Light and Blue Moon in New Zealand and we will commence distributing Carlsberg in the first quarter of next year.”

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