Coca-Cola Amatil plunges back into brewing

Coca-Cola Amatil has opened its expanded brewery in Suva as part of an aggressive export push for its Fijian beer and rum brands.

CC Amatil’s managing director for alcohol and coffee, Shane Richardson, told The Australian that the company’s loss-making beer division would break even this year.

Earnings have fallen short of target since the company began brewing again after a two-year break.

It has reinvested in the industry, joining with its partner Casella Family Wines to launch Yenda Pale Ale as part of a push into the craft beer market.

CC Amatil has also invested $A11 million on the Suva brewery, operated by Paradise Beverages. The expansion has doubled its annual capacity to five million cases of beer.

Mr Richardson says there is a huge opportunity to export Vonu Pure Lager as well as Bounty Rum.

“We believe Vonu has enormous potential,” he says. “It’s a great beer from the Pacific and we are doing more work on the positioning and look of the brand.

“We plan to take that to the wider market with the key markets being Asia, Europe, the Americas and Australia. If you look at other Fiji brands, they have had some very strong success, especially in the American market and with the European markets.”

Paradise Beverages is owned 89.6% by CC Amatil, which bought the stake from SABMiller in 2012 after the Foster’s takeover. Paradise will invest $A28 million over three years on the plant and equipment to redress years of under-investment.

Mr Richardson says CC Amatil managing director Alison Watkins is fully committed to building the alcoholic beverages side of the business.

“We are investing a lot of time and effort in ensuring the longer-term part of this business in alcohol has strong foundations.’’

He says it will break even this year – “and it’s only our second year back in beer. You don’t create an overnight success in beer. Beer you have to work at.”

The Jim Beam dark spirit business has also improved and is now in growth.

Jim Beam’s new owner, Japan’s Suntory Holdings, supports CC Amatil’s plans for the brand in the region, he says.