Schweppes has told employees that it will shut down the Wulkuraka site as part of a staged closure to secure some of P&N production lines.
Last year Schweppes Australia owners Asahi Holdings (Australia) proposed to acquire P&N Beverages and integrate the businesses. The ACCC opposed the acquisition stating competition concerns. However, persistence to develop alternative deal options has resulted in a beverage industry restructure between the two drink manufacturing giants.
Under the deal, Asahi has provided the ACCC with certain undertakings, part of which requires Schweppes to swap some of its production lines for some P&N production lines.
The compromise was reached to ensure both manufacturers were able to continue to produce their respective product ranges, while largely to ensure competition remained robust in the marketplace.
One production line on the “swap” agenda is Schweppes’ Wulkuraka, Queensland operations.
The company told 40 employees last week that the beverage industry restructure deal will see the Wulkuraka sit shut down as part of a staged closure.
P&N will take over a part of the Wulkuraka operation and will also build a new factory in Ipswich at Bundamba, Queensland which will be operating within 12 months. P&N will trade as Tru Blu Beverages.
The deal will see Schweppes will acquire some of P&N's manufacturing sites, including a factory at Goodna. In the longer term, Schweppes will have three manufacturing sites in Queensland.