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Coca-Cola Amatil

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Coca-Cola Amatil Limited
Company typePublic
ASX: CCL
IndustryBeverage
Founded1910
Headquarters
Coca-Cola Place
North Sydney, New South Wales
,

Australia
Area served
Australia
New Zealand
Indonesia
Papua New Guinea
Fiji
Samoa
Key people
David Gonski AC, Chairman
Terry Davis, Group Managing Director
Warwick White, Managing Director, Australasia
John Murphy, Managing Director, Australian Beverages
Barry O'Connell, Managing Director, New Zealand & Fiji
Kadir Gunduz, President Director, Indonesia
Peter Kelly, Managing Director, SPC Ardmona
ProductsCoca-Cola, Diet Coke, Coca-Cola Zero, Deep Spring, Fanta, Kirks, Lift, Mother, Mount Franklin Spring Water, Nestea, Powerade, Pump, Sprite, Sprite Zero, SPC Ardmona packaged fruit, baked beans, spaghetti, canned tomatoes and spreads
ServicesManufacturing and distribution of alcoholic and non-alcoholic beverages
RevenueIncrease A$5,097.4 million (2012)
Increase A$895.5 million (2012)
Increase A$558.4 million (2012)
Number of employees
14,900
DivisionsAustralia, New Zealand, Indonesia, Papua New Guinea, Fiji, Samoa, SPC Ardmona
Websitewww.ccamatil.com

Coca-Cola Amatil (CCA) is one of the largest bottlers of non-alcoholic ready-to-drink beverages in the Asia-Pacific region and one of the world’s five major Coca-Cola bottlers. CCA operates in six countries – Australia, New Zealand, Indonesia, Papua New Guinea, Fiji and Samoa.

CCA’s diversified portfolio of products includes carbonated soft drinks, spring water, sports and energy drinks, fruit juices, iced tea, flavoured milk, coffee, tea and SPC Ardmona and Goulburn Valley packaged ready-to-eat fruit and vegetable snacks and products.

CCA produces the Australian market’s number one cola brand, Coca-Cola, the number one bottled water brand, Mount Franklin and the number one sports beverage, Powerade Isotonic, and is market leader in non-sugar colas with Diet Coke and Coca-Cola Zero. Low and no-sugar beverages are a high growth part of the CCA portfolio, growing at more than three times the rate of sugar-sweetened beverages in 2012.

CCA sells and distributes a range of Beam Global premium spirits including Jim Beam, Canadian Club, Makers Mark and The Macallan. CCA also manufactures and distributes the best-selling ready-to-drink alcoholic beverage, Jim Beam & Cola. CCA owns breweries in Fiji and Samoa and a distillery in Fiji, making Fiji Bitter, Vailima beer and Bounty Rum. In December 2013, CCA will re-enter the premium beer market in Australia with a manufacturing joint venture with the Casella group.

CCA employs 14,900 people across the Group and has access to 270 million consumers through more than 700,000 active customers.

Products

Coca-Cola Amatil distributes a number of sparkling, still and alcoholic beverages. Some of these include:

Countries served

Coca-Cola Amatil currently employs 14,900 people in six countries across the Asia-Pacific region, and had after-tax profits of A$558.4 million in 2012 calendar year on EBIT of A$895.5 million. Its share price has consistently outperformed the ASX 200 market index over the past few years.

The company is the bottler of Coca-Cola products in Australia, New Zealand, Indonesia, Papua New Guinea, Fiji, and Samoa.

Ownership

Coca-Cola Amatil is an Australian company, however The Coca-Cola Company has a 29% shareholding in Coca-Cola Amatil, as it does with each of its primary or "anchor" bottlers in the worldwide Coca-Cola system.

History

The company's Australian origins date back to 1904 as the tobacco company British Tobacco (Australia). Its first foray into soft drinks came in 1964 with the purchase of Coca-Cola Bottlers (Perth), and the company was listed on the Australian Stock Exchange in 1972.

Soft drinks and snack foods gradually became the primary focus of the company, which was renamed Amatil Limited in 1977. It began to expand bottling operations overseas in Europe, purchasing a Coca-Cola bottling plant in Australia in 1982 and expanding into Fiji and New Zealand in 1987. A majority stake was purchased by The Coca-Cola Company in 1989, although today its ownership is 29%.

The snack food operations were sold in 1992, and European operations were spun off into a new company, Coca-Cola Beverages, in 1998. Expansion into Asia continued, though Filipino bottling was eventually sold to San Miguel Brewery and parent The Coca-Cola Company.

Coca-Cola Amatil's Managing Director is Terry Davis, and the board chairman is David Gonski.

CCA has facilities all over Australia, with key sites at Northmead (NSW), North sydney (NSW), Richlands (Qld), Moorabbin (VIC), Thebarton (SA) and Kewdale (WA).

From 2006 to 2011, CCA had a joint venture (named Pacific Beverages) with SABMiller to distribute its drinks in Australia. In 2011, SABMiller acquired Foster's Group and full ownership of Pacific Beverages; in exchange, Foster's sold its Fiji and Samoa operations to Coca-Cola Amatil in 2012.

Coca-Cola & the Beverage Industry lobbying against Cash for Containers

Much controversy has surrounded Coca-Cola’s fierce opposition to Cash for Containers. Allegations of Coca-Cola wielding their power and wealth to unfair advantage over public policy have been prominent.[1][2] Shadow Minister John Hyde supports allegations that beverage industry lobbyists raised the suggestion of campaigning against Labor members if support for Cash for Containers was not dropped.[3] Treasurer Delia Lawrie has also reported a meeting where Coca-Cola allegedly offered to fund the Country Liberal Party to oppose a container deposit scheme, a claim representatives have strongly denied.[1]

Alec Wagstaff, Director of Corporate Affairs at Coca-Cola Amatil, admitted the beverage industry had spent a couple of hundred thousand dollars back in 2008 campaigning against the Greens Party who strongly promoted the Cash for Containers Scheme.[1]

Similar tactics used by the beverage industry in Western Australia have been blamed for the Government’s rejection of a Cash for Containers scheme, despite the states dismal 20% container-recycling rate.[1]

Beverage Companies take Northern Territory Government to Court

In 2013, Coca-Cola Amatil joined with Schweppes and Lion in a legal challenge against the Northern Territory Government's 'Cash for Containers' (also known as Container Deposit Legislation) recycling scheme arguing it breached the Mutual Recognition Act 1992.[4][5] This Act creates a legal requirement that “goods produced in or imported into the first State, that may lawfully be sold in that State… (may) be sold in the second State.” [6] The Beverage Companies argued that the recently introduced Cash for Containers scheme, which doubled recycling rates to 30% in the Northern Territory in the limited time it operated, hindered this right by requiring the company to implement different production processes for the same product in different states and territories.[7] South Australia is exempt from legal action as its Container Deposit scheme precedes the Act.[8] The federal court ruled in favour of the Beverage Companies.[9][10] The ruling sparked public outrage and led to Coca Cola's Facebook page being bombarded[citation needed] and some calling for a boycott[11][12][13][14]

According to a 2008 Clean Up Australia poll, 80% of Australians [15] support a Cash for Containers scheme - a recycling scheme which rewards consumers by refunding a 10 cent deposit on beverage containers.

Coca-Cola argues that the Cash for Containers scheme is ineffective and costly suggesting a “National Bin Network” [16] as an alternative solution. The Council of Australian Governments (COAG) found the cost of a national CDS to the economy would be between $1.4 and $1.76 billion but research undertaken by the Boomerang Alliance in 2008 suggested that such a scheme would in fact bring about saving of up to $84 million. [17]

Organisations such as Keep Australia Beautiful and the Boomerang Alliance support the initiative as an addition to Cash for Containers, but argue that if used alone it will make a comparatively insignificant difference to recycling rates.

Former Northern Territory Chief Minister, Terry Mills, stated that he would continue to fight against Coca-Cola for Cash for Containers and called on other States and Territories to support the Scheme.[7][18]

References

  1. ^ a b c d Money for empties - Background Briefing - ABC Radio National (Australian Broadcasting Corporation)
  2. ^ Why did previous WA government drop 'cash for containers'? - Breakfast - ABC Radio National (Australian Broadcasting Corporation)
  3. ^ http://www.parliament.qld.gov.au/documents/explore/ResearchPublications/ResearchBriefs/2010/eRBR201001.PDF
  4. ^ Northern Territory Government - FRONT ROW SEAT FOR CONTAINER DEPOSIT CHALLENGE
  5. ^ Recycling Canned: 12/03/2013, Behind the News
  6. ^ MUTUAL RECOGNITION ACT 1992
  7. ^ a b PM - NT's container deposit scheme fails court challenge 04/03/2013
  8. ^ Money for empties - Background Briefing - ABC Radio National (Australian Broadcasting Corporation)
  9. ^ Government loses 'cash for cans' battle | News | NT News | Darwin, Northern Territory, Australia | ntnews.com.au
  10. ^ Coca-Cola wins Federal Court case, cash for containers recycling found illegal | News.com.au
  11. ^ http://www.ntnews.com.au/article/2013/03/05/318262_ntnews.html
  12. ^ Anger at Coke's successful bid to abolish Northern Territory recycling deposit | News.com.au
  13. ^ Coke under fire from angry consumers after successful bid to abolish container deposit scheme | Packaging News | Jobs | Production | Design | Innovation
  14. ^ Council suspends its collection scheme and activists ‘disable’ Coca Cola machines as NT loses container deposit court case – Alice Springs News
  15. ^ Container Deposit Scheme
  16. ^ http://nationalbinnetwork.com.au/
  17. ^ [1]
  18. ^ NT vows to appeal drink can deposit ruling

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