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Coca-Cola Amatil NZ taking steps to buy Baker Hall
FoodBev Media

FoodBev Media

8 December 2008

Coca-Cola Amatil NZ taking steps to buy Baker Hall

The New Zealand unit of CCA wants to buy the bottling production line, brands and business assets of Baker Hall from Old Fashioned Foods Ltd (OFF). CCA has the exclusive licence to bottle the Coca-Cola brand in New Zealand, and has five bottling plants in New Zealand.

The Baker Hall business is a cordial manufacturing and marketing business based in Auckland, and is 100% owned by OFF, a global manufacturer and exporter of food and beverages.

In considering the application, the Commission's role is to determine whether the acquisition has the effect of substantially lessening competition in a market.

According to reports, analysts say the deal could be part of a major realignment of drinks giants which has been under way over the last few months.

Last month, Lion Nathan, the alcoholic beverage company, announced a $A7.6bn ($4.9bn) takeover of Coca-Cola Amatil. However, CCA rebuffed the offer.

46% of Lion Nathan shares are owned by Japanese drinks company Kirin, the rest by Australian and New Zealand share funds. The company has 52% of the New Zealand beer market while Coca-Cola Amatil has 53% of the New Zealand non-alcoholic ready-to-drink market and 75% of the carbonated soft drink market.

In October, Japanese drinks company Suntory has purchased Frucor, which holds the Pepsi bottling licence in New Zealand. Frucor's brands include Fresh Up, Mizone, V, H2go and Just Juice.

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