Page 31 - Food & Drink Business Nov-Dec 2019

DATA SOURCED FROM
ABBREVIATIONS O Overseas NL Non-listed P Publicly listed Pty Proprietary/private C Co-operative ▼ Revenue down ▲ Revenue up
COCA-COLA AMATIL
CCA sells SPC, invents rPET for soft drinks
3
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▼
P
4887
12/18
4891
Alison Watkins
COCA-COLA Amatil regained third place this year after moving to fourth last year. Amatil is a locally owned public company that generates its revenue from manufacturing, marketing and distributing a range of beverage and food products.
In June, Amatil sold its fruit business SPC to Shepparton Partners Collective for
$40 million. The sale agreement included a four-year deferred payment which, subject to business performance, could result in up to an additional
$15 million of sale proceeds at that time. In June, Amatil announced it had produced
LION
Australia’s first carbonated soft drink bottle from 100 per cent recycled plastic. By the end of 2019 it aims to have all single- serve plastic bottles in Australia switched to the new material.
Amatil also replaced all single- use plastic straws and stirrers with paper straws in working towards the company’s target
of 100 per cent packaging to be recyclable by 2025.
Amatil Group MD Alison Watkins announced the company was on track to source 60 per cent of its energy from low-carbon and renewables by next year.
Peter West, MD of Australian Beverages at Amatil, said that
from 2020, the company will use 16,000 tonnes less of virgin plastic in Australia as it doubles its use of recycled plastic bottles in the Australian market.
After buying a 45 per cent stake in Made Group last October, Amatil struck a new distribution deal to expand Made’s Rokeby Farms and Impressed beverage brands into 50,000 restaurants, cafés and convenience stores around the country.
Amatil signed a five-year agreement with Pizza Hut to be the only supplier of non-alcoholic beverages to the company after
it lost its contract with Domino’s Pizza to Asahi/Schweppes.
4
REV UP/DOWN
TYPE
REV $M
PERIOD
PREVIOUS REV $M
AT THE HELM
▼
O Pty
4113
12/18
5370
Stuart Irvine
Lion offloads part of dairy & drinks
LION switched spots with Coca-Cola Amatil, moving from third to fourth place on the list, and recorded a 23.41 per cent drop in revenue. A swing factor in its ranking was the comparative 2017 accounting period, which was 15 months.
Lion makes most of its revenue from the production, marketing, and distribution of branded beverages and dairy products. Last year, Lion’s Japanese parent Kirin carried out a strategic review of the business and
announced it would sell its dairy and drinks business (LDD).
In April, the Australian Competition and Consumer Commission (ACCC) put the brakes on an agreement between Saputo and LDD for Saputo to acquire Lion’s speciality cheese business for $280 million on a cash-free and debt-free basis,
to be paid in cash and available credit. The business’s revenue was $192 million for the 2018 calendar year. The agreement would see Saputo acquire Lion’s Tasmanian
cheese processing plants, located in Burnie and King Island, as well as Lion’s cheese brands, including South Cape, King Island Dairy and Tasmanian Heritage.
In September, the ACCC cleared the way for the deal, which was completed in October.
Lion CEO Stuart Irvine said: “We are continuing to consider various pathways forward for the balance of the Dairy & Drinks business and will take the time to ensure we achieve the best possible outcome over the coming period.”
www.foodanddrinkbusiness.com.au | November-December 2019 | Food&Drink business | 31