Coca-Cola Amatil Limited (CCA) has lowered its earnings expectations for the full year to 31 December but says it is ready to hit the ground running with a portfolio of beer brands.
The company has signed a long-term exclusive agreement with the Boston Beer Company to distribute America’s largest selling craft beer, Samuel Adams beer, in Australia.
According to CCA, the Boston Beer Company is America’s leading brewer of handcrafted, full-flavoured beers and has won more awards in the last five years than any other brewery in the world.
“With just over a month left until CCA re-enters the beer and cider market in Australia, we are ready to hit the ground running with a great portfolio of beer and cider brands,” CCA MD Terry Davis said.
CCA has been barred from operating in the Australian beer market until the end of 2013 under the conditions of the sale of its share in Pacific Beverages to SABMiller in 2011.
Come January, however, the new CCA beer line-up will also include the Molson Coors premium beers, including Blue Moon and Coors, and a full range of Rekorderlig ciders in both bottled and draught from January 2014.
According to Davis, CCA has also developed a number of its own products including Alehouse, an on-premise only premium draught beer in both mid and full strength, and Pressman’s cider, an Australian craft cider.
“We have also been making great progress on our revitalisation plan for Paradise Beverages in Fiji at both our beer and rum operations with capital upgrades well advanced and a strong new product pipeline.
“I believe the alcoholic beverages business will generate 1-2 per cent of incremental Group earnings growth in 2014,” Davis said.
CCA also said, however, that it expects its 2013 full year Group EBIT to be within a range of a five per cent to seven per cent decline on last year.
According to Davis, CCA was not seeing the expected post-election uplift in consumer spending.
“The non-grocery business has continued to grow volumes in the second half, however, consumer demand has been more subdued than expected,” he said.
CCA has signed a long-term exclusive agreement with the Boston Beer Company to distribute Samuel Adams beer in Australia.
