Coca-Cola Amatil CEO: Focus On Organic Growth In Beer Business
29 July 2010 - 12:38PM
Dow Jones News
Coca-Cola Amatil Ltd. (CCA.AU) Chief Executive Terry Davis said
Thursday the present focus in the beer business is on organic
growth, indicating the group isn't currently interested in buying
Foster's Group Ltd.'s (FGL.AU) beer operations.
"With asset values as high as they are today, you'd say it's
very difficult," to justify an acquisition, he said to reporters at
the opening of the group's Bluetongue Brewery in Warnervale. He was
speaking more broadly about the beverage market and added "if asset
values change, then we revisit the model".
Davis said he'd be looking at Foster's first-half
results--Foster's recently announced the demerger of its wine and
beer operations, increasing speculation that Coca-Cola Amatil might
consider buying its beer operations--but he wouldn't comment on
whether Coca-Cola Amatil was interested in buying Foster's beer
operations.
The company's new brewery will help it grow its premium beer
offerings. The group currently has about 10% of the premium beer
market in Australia with brands like Bluetongue and Peroni.
John Murphy, managing director of licensed alcohol at Coca-Cola
Amatil, said the group plans to launch new beers with its new
brewery.
Davis expects the premium beer market to continue to grow,
despite an overall slowdown in consumer spending in the first half
of 2010.
-By Cynthia Koons; Dow Jones Newswires; +61-2-8272-4691;
cynthia.koons@dowjones.com
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