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CCA launched Glaceau on the Australian market in February, on the same day it announced impressive financial results for 2007.
Sales by the Australian bottler – which also distributes Coca-Cola in New Zealand, Indonesia, Papua New Guinea and Fiji – rose a modest 1.9% to A$4.52 billion (US$4.15 billion) last year. But CCA’s net profit before one-time charges jumped 13.2% to A$366.3 million (US$336.7 million), beating the company’s own forecast of 10-11% growth.
Managing Director Terry Davis said the increase came from, “the strong performance of the Australian and New Zealand beverages business, excellent results from Indonesia, and a solid contribution from our emerging alcohol business.”
Global expansion
CCA is expanding its beverage portfolio further than other Coke anchor bottlers around the world, by diversifying into alcoholic as well as non-alcoholic beverages. The company went into partnership with global beer giant SABMiller in August 2006, setting up a 50/50 joint venture called Pacific Beverages.
The first purpose of Pacific Beverages was to serve as Australian distributor for three premium imported SABMiller beers: Peroni Nastro Azzurro, Miller Genuine Draft and Pilsner Urquell. However, the partners made clear they had larger designs on the Australian market, including domestic production.
In November 2006, Pacific Beverages clinched an agreement with global spirits group Maxxium to become the exclusive Australian distributor of premium Maxxium brands, including Jim Beam bourbon, Remy Martin cognac and Absolut vodka.
In December 2007, Pacific Beverages also acquired Bluetongue, a fast-growing Australian 'boutique' brewery, with annual production capacity of up to five million litres. The partners pledged to expand sales and distribution of the four-year-old Bluetongue beer brand.
Now CCA and SABMiller have revealed plans to build a sophisticated new brewery, increasing production capacity not only for Bluetongue, but for other beer brands. The A$120 million (US$110.3 million) plant will be constructed close to the existing Bluetongue brewery in Newcastle, New South Wales.
Davis said: “We're looking forward to building a state-of-the-art facility with our partners SABMiller who, as one of the world’s largest brewers, will bring great brewing technology and expertise to our Australian market.”
“A local brewing facility will give us the option to expand our portfolio, and to continue providing consumers with top quality products,” added Ari Mervis, MD of SABMiller’s Asian division.