SABMiller and Coca-Cola Amatil Announce Australian Agreement
Under the terms of the agreement, SABMiller and CCA will each hold a 50% interest in the joint venture, which will be known as Pacific Beverages Pty Ltd.
11/08/06 SABMiller plc has entered into a joint venture with Coca-Cola Amatil (CCA) to import, market and distribute SABMiller's international premium brands in Australia.
Under the terms of the agreement, SABMiller and CCA will each hold a 50% interest in the joint venture, which will be known as Pacific Beverages Pty Ltd. The joint venture will combine SABMiller's marketing expertise with CCA's comprehensive sales and distribution infrastructure to sell Peroni Nastro Azzurro, Pilsner Urquell and Miller Genuine Draft alongside CCA's existing non-alcoholic beverage portfolio.
The joint venture, which is expected to be operational by Christmas 2006 following the fulfilment of certain conditions, will be headed by Ari Mervis, formerly Managing Director of SABMiller's Russian operations. During the four years under Mr Mervis' leadership, the Russian business grew beer volumes by more than 150% resulting in SABMiller holding the leading position in the international premium sector of this highly competitive market.
CCA is the largest non-alcoholic beverage company in the Asia-Pacific region and one of the world's leading Coca-Cola bottlers, with operations in six countries.
The premium beer market in Australia has grown by 15 percent per annum over the past five years, driven specifically by international imported premium brands. This transaction reflects SABMiller's continued strategy to invest in its international brand portfolio and expand into growth markets.
"We are delighted to partner with CCA in growing our premium beer business in Australia, as we believe that our joint expertise in the beverage industry will give us the necessary foundation to be a significant player in this segment,” Andre Parker, Managing Director of SABMiller Africa and Asia said.
"We believe there is enormous potential to grow the premium beer market in Australia for the Peroni Nastro Azzurro, Miller Genuine Draft and Pilsner Urquell brands, and look forward to working with our partner to build Pacific Beverages into a formidable contender in this category," Parker added.
Commenting on the transaction, Terry Davis, Managing Director of CCA Group said: "Both SABMiller and CCA own, market and distribute many of the world's premium beverage brands. When they are combined with SABMiller's world-class marketing capabilities and CCA's strong customer relationships, sales force and distribution capabilities, you have a very solid platform to expand the premium beer offering in the Australian market”.
"Over the past three years, CCA's beverage sales to the hotel, restaurant and cafe channel have grown considerably and are now a significant contributor to the Australian beverage business' earnings,” he added.
