CCA Expands Premium Beverage Portfolio - Coca-Cola Amatil

Media Release
Sydney, November 2006
COCA-COLA AMATIL EXPANDS PREMIUM BEVERAGE PORTFOLIO
Coca-Cola Amatil (CCA) has taken another step towards broadening its beverage portfolio in
Australia, entering exclusive agreements with Jim Beam Brands Australia and the global premium
spirits distributor Maxxium.
The agreement with Jim Beam Australia means CCA will manufacture, sell and distribute Jim
Beam’s alcoholic ready-to-drink (ARTD) beverages, including Australia’s most popular ARTD, Jim
Beam and Cola.
The agreement with Maxxium allows CCA to sell and distribute all of Maxxium’s spirits brands in
Australia, including Jim Beam bourbon, Remy Martin cognac, Cointreau liqueur, The Famous Grouse
whisky and Absolut vodka.
The Maxxium sales team will join CCA in a move which will significantly increase CCA’s existing
sales force which services the Hotel, Restaurant and Cafe (HORECA) channel.
Jim Beam sells approximately 8 million cases of ARTDs each year in Australia, including Australia’s
number one selling ARTD, Jim Beam and Cola, as well as Canadian Club and Cola and Old Crow and
Cola.
All Jim Beam ARTD brands will be produced at CCA’s facility in Adelaide, South Australia.
CCA will spend $8 million to upgrade its Adelaide facilities which will give it the capability to
handle up to 46 per cent of the total ARTD market in Australia.
It is expected that supply will commence in April 2007
CCA’s move into premium ARTDs and spirits follows the announcement in August of the formation
of Pacific Beverages Pty Ltd, CCA’s joint venture with the world’s second largest brewer, SABMiller,
to sell and distribute SABMiller’s premium international beers Peroni Nastro Azzurro, Miller Genuine
Draft and Pilsner Urquell. CCA has already begun to distribute the beer brands across Australia.
CCA’s Group Managing Director, Terry Davis, said the company’s move into the premium ARTD and
spirits market in Australia was a logical extension for the company.
Mr Davis said: “The joint venture with SABMiller was the first step in extending CCA’s beverage
portfolio into alcoholic beverages, and this agreement with Jim Beam to exclusively manufacture,
sell and distribute ARTDs , and the agreement with Maxxium to sell and distribute their premium
spirit brands, is the next one.
“With Jim Beam and Maxxium we are building a presence in alcohol in the premium beverages
market, a place we understand well with our brand Coca-Cola beverages.”
Investor inquiries:
Media inquiries:
Kristina Devon, Investor Relations Manager, Coca-Cola Amatil
02-9259 6185
Sally Loane, Director of Media and Public Affairs, Coca-Cola Amatil
02-9259 6797 or 0416 162 336
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Media Release
Note to editors
Coca-Cola Amatil (CCA) is the largest non-alcoholic beverage company in the Asia-Pacific region
and one of the world’s top five Coca-Cola bottlers. CCA operates across 6 countries – Australia,
New Zealand, Indonesia, South Korea, Fiji and Papua New Guinea. In the past 5 years CCA has
diversified its portfolio of products to include water, sports drinks, fruit juices, coffee, iced teas
and packaged ready-to-eat fruit and vegetable products. In August 2006 CCA and SABMiller formed
a joint venture company, Pacific Beverages Pty Ltd, to market and distribute premium beers,
Peroni Nastro Azzurro, Miller Genuine Draft and Pilsner Urquell, in Australia.
CCA’s Australian revenue in 2005 was AUSD $2.1 billion and EBIT AUSD $455.5 million.
CCA’s group revenue in 2005 was AUSD $4 billion and EBIT was AUSD $570 million.
Maxxium is a global company distributing premium spirits in 35 countries. Maxxium has four
shareholders – the US-based Beam Global Spirits and Wine, the French Remy Cointreau, Scottish
whisky producers The Edrington Group and the Swedish-based V&S Group.
Maxxium Australia is based in Sydney. Its sales rose 12.6 per cent to $328.7 million during 2005
with pre-tax profit up 10.8 per cent to $11.2 million and net profit up 19.7 per cent to $8.5 million .
Maxxium Australia’s portfolio of brands includes: Jim Beam Bourbon, Absolut vodka, Cointreau,
Remy Martin cognac, The Famous Grouse and The Macallan whiskeys, Piper Heidsiek champagne,
Galliano, Plymouth Gin and Bols liqueurs.
Jim Beam Australia (Beam Spirits and Wine) is the largest shareholder in the Maxxium company.
Before entering into the agreement with CCA, it has been contract manufacturing ARTDs with
Cadbury-Schweppes.
Jim Beam Australia currently sells approximately 8 million cases of ARTDs each year, including Jim
Beam and Cola, Canadian Club and Cola and Old Crow and Cola.
Jim Beam, a 200 year old American bourbon, still brewed by the Beam family, is the world’s bestselling
bourbon. In 1964 the US Congress declared Jim Beam “America’s Native Spirit”.
• Value of retail sales of all alcoholic beverages in Australia in 2006 is $28.4 billion (Euromonitor).
• Value of retail sales of all non-alcoholic beverages in Australia is $9 billion (excluding coffee,
tea and dairy) (Euromonitor).
• Value of retail sales of all RTDs in Australia in 2006 is $4.2 billion (Euromonitor).
• The RTD category in Australia has grown by 15 to 20 per cent per annum over the last five years.
• Future growth in RTDs likely to be high single digit growth.
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