Drinks manufacturer Frucor Suntory will build a $400 million beverage production facility in Ipswich, Queensland to establish a production footprint in Australia, relieve pressure on its New Zealand operations, and fuel growth. CEO Darren Fullerton told Food & Drink Business the investment would deliver greater capacity, flexibility and opportunities for the company’s brands and its people.
Queensland Premier Annastacia Palaszczuk said it was a “big win” for the state.
“It’s an incredible coup of our state that an international company of the calibre of Suntory, that has a global workforce of over 40,000, has chosen Queensland ahead of others to establish a permanent manufacturing facility here,” Palaszczuk said.
For Fullerton, the build reflects renewed ambition. “When I joined, there was an overarching theme that the company was a great business and had huge potential, but it hadn’t transformed enough for that potential to be realised,” he said.
Fullerton joined the company almost two years ago, after 18 years with PepsiCo ANZ working in its beverage and snacks divisions.
Frucor was established about 60 years ago in New Zealand, with Suntory acquiring the company 10 years ago. The company’s major brands include V and Boss Iced Coffee.
“In New Zealand we are a strong number two player across multiple channels, the focus in Australia has been a lot narrower until now. The Ipswich facility reflects the huge potential we see in becoming a much broader, multi beverage player as we grow our Australian footprint,” Fullerton said.
The company was also faced with the time sensitive reality that it was reaching capacity in its New Zealand operations. “Releasing the pressure on operations in New Zealand will also unleash potential,” he said.
Suntory Beverage & Food APAC CEO Taka Sanno said, “We see outstanding growth opportunities and world class talent across the Oceania region and this facility plays a critical role in realising our plans.
“In line with our Suntory ‘Growing for Good’ vision, we want the new facility to set a benchmark for our investment into sustainable technologies to drive efficiency and minimise our carbon footprint.”
Fullerton said building a stronger connection with Suntory has been rewarding and satisfying. “Strategic planning looks at ten to fifteen years out, not three or five. And sustainability is ingrained in its DNA. It was a high priority that we were working towards a net zero state-of-the-art facility. Of course, it increases the investment, but it also creates flexibility for us,” he said.
The multi-beverage facility will be on a 17-hectare, greenfield site in the New-Gen Business Park in Ipswich, and will include beverage processing, packaging, warehousing, and distribution. It will be able to product up to 20 million cases of drinks a year when it opens in mid 2024, with the site also designed for significant scaling in the future.
“Building on our strong manufacturing capabilities in New Zealand, this investment in Queensland recognises the growth trajectory we believe is possible for our business,” Fullerton said.
The announcement is also reassuring and exciting for employees, Fullerton said. “People have endured a lot of difficulty over the last couple of years, but the company still managed to grow and increase our growth rate – I am really proud of the resilience of our people and the strength of the company’s culture that came to the fore during the pandemic.
“News like this helps them understand that the slog has been worth it. Growth in the business also means more opportunities for the team. Working more closely with Suntory and the possibilities that stem from this announcement opens up the world for our people,” Fullerton said.
