As it moves to focus on other alcohol categories, Coca-Cola Europacific Partners Australia (CCEP) will offload the production, sale and distribution of its beer and cider portfolio in Australia and sell craft brewery Feral Brewing Company.
CCEP vice president & general manager Australia, Pacific & Indonesia Peter West said the decision to exit would better position the company to implement growth plans for its Spirits, Alcohol Ready-To-Drink (RTD) and Non-Alcohol Ready-To-Drink (NARTD) business.
West said that to see beer and cider reach its potential would require “significant over-investment to accelerate scale” that would be at the expense of other categories.
“As a bottler of iconic brands such as Coca-Cola and Jim Beam, this would come at the expense of focusing our efforts, teams and innovation on our core Spirits, RTD and NARTD portfolios, where we have a much greater ability to drive category growth,” West said.
“A move away from beer and apple cider will allow for greater focus for our teams to execute our exciting growth plans in Spirits, RTD and NARTD and enable the future partners of these beer and apple cider brands to continue to accelerate their performance.”
The decision will see CCEP’s current arrangement with C&C Group wind up in the first half of 2022, and its agreement with Molson Coors will not be renewed in the coming months.
Meanwhile, CCEP has appointed Kidder Williams Ltd to advise on the sale of its craft brewery Feral Brewing Company.
West said it was time for the brand to “stretch its potential” under new ownership.
“On the back of the double-digit growth our Feral brand has achieved over the last four years and the strong business and brand loyalty the Feral team in WA has built, we are excited about what the future holds for Feral Brewing Company,” he said.
Rekorderlig and Australian Bitters will continue to be managed in CCEP’s alcohol portfolio alongside its Spirits and RTD brands.
