Today Coca Cola Amatil, the country’s biggest beverage company, announced both a 5.6% net profit result and an agreement with Yellow Tail owner Casella that will see it re-enter the beer market.
CCA’s volume growth had slowed since June, and the next profit to June of $247.1 million was slightly up from $234.1 for the same period last year. It saw Indonesia’s importance as a market increase and demand dampen due to a damp summer period.
Teaming up with Casella Group will see a $46 million loan to the winemaker and owner of Australian Beer Company to expand the capacity of a Griffith brewery. It hopes to build capacity to 500,000 hectolitres a year.
CCA told the ASX that the loan will become a joint venture in December 2013, when CCA is legally no longer restrained from selling, making or distributing beer.
“This new agreement with Casella will give CCA the opportunity to access a world-class, low-cost brewery,” said CCA CEO Terry Davis.