Coca Cola Amatil set to re-enter Australia's beer market next year
23 Aug 2012
Coca Cola Amatil (CCA) is all set re-enter the Australian beer market late next year, but is short by only a step, an actual deal with a global beer brand.
It announced yesterday a tie-up in a joint venture with the maker of Australia's wildly successful Yellow Tail wine label.
CCA would lend $46 million in a joint-venture vehicle, Australian Beer Company, that would acquire what it describes as the world-class brewery operation recently set up by Yellow Tail's owner, the Casella Group.
This loan would convert to a 50 per cent share in the business on 16 December next year, with the expiry of CCA's non-compete clause with SABMiller.
According to CCA chief executive Terry Davis, the new agreement would enable the company to re-enter the premium beer market in Australia after 16 December 2013.
The company also reported interim results that were better than expected.