Coca-Cola Amatil (CCA) cements its long term strategy to enter the alcoholic beverages market with Beam Global contract
March 21, 2011
Coca-Cola Amatil (CCA) has cemented its relationship with US wine and spirit manufacturer Beam Global Spirits, making good on its long term strategy to enter the alcoholic beverages market.
The 10 year agreement involves the manufacture, sales and distribution of the Beam premium spirits portfolio in Australia, Beam Global’s second largest market in the world.
Worth between $30 and $35 million, the contract reflects an expansion of a 2007 arrangement where
CCA managed sales and distribution for Beam Global on behalf of its (CCA’s)
joint venture partner Pacific Beverages.
According to the partners, the new deal allows a stronger opportunity for them to drive growth and market share in Australia, where Beam Global’s flagship brand, Jim Beam Bourbon, is the country’s top-selling spirit
and Jim Beam and Cola is the top selling alcoholic ready-to-drink (RTD) brand.
“CCA will continue to be responsible for manufacturing Beam Global’s RTD products, as well as the sales and distribution of the entire Beam Global Spirits & Wine portfolio in Australia in its own right, while Beam Global will continue to deliver advertising, sponsorship and promotions for the brand portfolio,” says CCA Group Managing Director Terry Davis.
“We expect working capital to increase by between $30 million and $35 million with the purchase of stock and other working capital as a result of its new responsibilities.
“We are delighted to sign this new 10 year agreement with Beam Global,” he says.
“Not only does it represent a more valuable long-term partnership with the makers of some of the world’s premium spirits brands, but it also cements a relationship which, in a very short period of time, has been highly successful for both partners.”
According to Beam Global President, Asia-Pacific/South America Phil Baldock, the two companies have cultivated a dynamic partnership
over the past four years.
“Our partnership with CCA has driven significant momentum for Jim Beam and our premium spirits portfolio in this very important market,” Baldock says.
“Coca-Cola Amatil’s retail market expertise and distribution reach, along with Beam Global’s brand-building power and innovative consumer communication, is a powerful combination that will give us a winning competitive edge in the marketplace.”
Beam Global’s top performing products include Jim Beam, Jim Beam & Cola RTDs, Canadian Club and Canadian Club and Ginger RTDs, Makers Mark Bourbon, Courvoisier Cognac and Laphroaig Scotch Whiskey