Coca-Cola Amatil announced last week an agreement with the Australian Beer Company that will see them move towards expanding into the premium beer market once current restraints end.
The agreement will see CCA lend up to $46 million to the Australian Beer Company, part of the Casalla group, and will be used to assist with the acquisition and expansion of brewery near Griffith, NSW. The state-of-the art brewery will have an annual capacity of 500,000 hectolitres.
CCA is currently subject to a restraint not to sell, distribute or manufacture beer in Australia until 16 December, 2013 and the Australian Beer Company will also refrain from those activities until that date at which time the loan will convert into a joint equity interest for CCA in the Australian Beer company, coinciding with the expiration of the restraint.
CCA has also proposed to acquire the Fiji brewery and distillery and has arranged multi-year distribution agreements with Grupo Modelo, Carlsberg and Molson Coors in the Pacific Islands as part of a wider strategy to leverage its sales and distribution scale into the premium beer market.
CCA’s Group Managing Director, Terry Davis said, “This new agreement with Casella will give CCA the opportunity to access a world class, low cost brewery which will enable us to re-enter the premium beer market in Australia after 16 December 2013 with sufficient initial manufacturing capacity to cater to approximately 15% of the premium beer market in Australia.
“CCA’s large scale sales and distribution expertise and experience, combined with the draught and packaged brewing capability of the Australian Beer Company, will provide international beer companies after 16 December 2013 with a uniquely independent route to market in Australia and the ability to partner with the leading non-alcoholic beverages and spirits partner for the licenced trade.”