Page 31 - Food & Drink Magazine Nov-Dec 2018

DATA SOURCED FROM
ABBREVIATIONS
O Overseas NL Non-listed P Publicly listed Pty Proprietary/private C Co-operative ▼ Revenue down ▲ Revenue up
3
4
LION
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▲
O Pty
5373
12/17
4902
Stuart Irvine
Lion prepares to exit dairy
LION, which rose from fourth to third place on the list, makes most of its revenue from the production, marketing, and distribution of branded beverages and dairy products. However big changes are afoot for the company following a strategic review of the business by Lion’s Japanese parent Kirin.
It was recently announced that Lion’s dairy and drinks business, Lion Dairy & Drinks (LDD) was up for sale to provide Lion with the capital and resources needed to grow into the future. LDD products include dairy and dairy
alternatives brands Pura, Dairy Farmers and Vitasoy as well as iced coffee drinks.
The LDD sale does not impact Lion’s alcohol businesses in Australia and New Zealand. Lion’s brands include a number of high-profile beers including XXXX, Tooheys and James Squire.
Kirin began a strategic review of the business unit as part of a broader review of its business portfolio.
“We believe a sale of LDD is the best option to set both Lion and LDD up with the capital and
resources needed to grow into the future,” Lion CEO Stuart Irvine said.
“The remaining Lion business has a number of avenues for growth available and the decision to sell LDD will realise the capital needed to accelerate investment behind these.”
Lion said it plans to continue to explore opportunities in growing high-margin categories in both alcohol and non-alcohol adjacencies, with a view to nurturing and growing other craft beverage brands.
COCA-COLA Amatil continued its drive into healthier beverages over the year.
The company, which fell from third to fourth place on the list this year, says it has seen volume growth in low- and no-sugar cola.
CCA and the Coca-Cola Company also joined forces to buy a significant stake in innovative Melbourne beverage startup MADE Group. The company makes infused waters, called NutrientWater, Impressed-brand cold-pressed juices, Rokeby Farms protein smoothies and Cocobella coconut water.
CCA has also begun a strategic
review of its fruit business SPC and says it is "exploring new options" including a change in ownership, alliances or mergers’. SPC is Australia’s largest packaged fruit and vegetables processor, and the news comes at the completion of a four-year, $100 million co-investment in SPC with the Victorian Government.
CCA’s group managing director Alison Watkins said the co- investment agreement was completed in June and included $22m from the Victorian Government and $78m from CCA which went into modernising the plant and creating new business
opportunities to support SPC's ongoing growth.
“We believe there are many opportunities for growth in SPC, including new products and markets, further efficiency improvements, and technology and intellectual property.
The review will look at how this growth
could be unlocked, potentially through a change in ownership, alliances or mergers,” Watkins said.
“Importantly, there are no plans to close SPC. We see a positive
future for SPC as it continues to transform its operations.”
COCA-COLA AMATIL
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▼
P
5024
12/17
5180
Alison Watkins
CCA explores its options
www.foodanddrinkbusiness.com.au | November-December 2018 Food&Drink business | 31