Cadbury will sell their Schweppes Beverages business in Australia for approximately A$1.185b to Japanese-brewer Asahi. The deal is pending regulatory approval and subject to a right of negotiation granted to The Coca-Cola Company (TCCC) in 1999. Under this provision, TCCC has the right until March 2009 to negotiate with Cadbury regarding a potential acquisition of the Schweppes Australia business. TCCC was granted the provision after a takeover bid for Schweppes almost a decade ago failed to... ...Read more »
The Food and Drug Administration (FDA), America’s food safety regulators, have reportedly given the all clear for the use of rebaudioside A (rebiana) - the sweetest part of the stevia plant. Cargill, the ingredients company that has teamed with Coca-Cola to create their stevia sweetener (Truvia), released a statement indicating that the long awaited FDA approval had been forthcoming. PepsiCo announced they had also received approval for their version of the sweetener. The decision paves the... ...Read more »
An anticipated US$13.7 billion deficit for New York in 2009/10 has potentially paved the way for a tax on non-diet soft drinks in the region. New York Governor David Paterson has announced that he intends to place an 18 per cent sales tax on ‘non-diet’ soft drinks “to combat obesity and related diseases”, with the funds raised directed to healthcare. There have been other states in the US which have placed a tax on soft drinks and/or confectionery, but New York will be the... ...Read more »
Revised forecasts predict volume growth of between 1 and 2% for the global carbonates category despite the worsening economic climate. The deterioration in financial conditions has inevitably prompted Canadean to downgrade their earlier projections by around 1% and the global beverage experts now expect the market to reach 208 billion litres by the end of this year, a figure that equates to 31 litres per year for every global consumer. 2009 will see a similar growth rate to 2008, before the green... ...Read more »
Food Standards Australia New Zealand (FSANZ) - an independent government agency responsible for setting food regulations - today invited public comment on a request to approve the use of phytosterols, derived from vegetable oils, in fruit juice and fruit juice drinks. Phytosterols (also known as plant sterols) are classified as a ‘novel food’ for food regulation purposes, which means that they are not a traditional part of the Australian and New Zealand diet and they have not been used before... ...Read more »
While sales trends have typically favoured white spirits in recent years, brown spirits, led by whiskey, appear to be making a comeback. U.S. sales growth for whiskey and brown spirits is outperforming the growth rate of the overall spirits category in 2008, according to The Nielsen Company. Brown spirits include all whiskeys: Bourbon/Straight, Blends, Canadian, Scotch, Irish, etc., as well as Cognac/Brandy. White spirits include Vodka, Gin, Tequila and Rum, even if such categories might include... ...Read more »
Coke bottler in Australia and New Zealand, Coca-Cola Amatil, has applied to the competitive watchdog in New Zealand for approval of a proposed takeover of cordial maker Baker Halls. Baker Halls, owned by the Old Fashioned Foods Group, is the number one selling fruit juice syrup in New Zealand and their owner has reportedly agreed to a sale of their hot-fill bottling production line, brands and associated business assets of cordial products, bearing the brands Baker Halls and Barker Halls Originals.... ...Read more »
Worldwide consumption of soft drinks rose by 3.9% in 2007 to 552 billion litres, equivalent to 82.5 litres per person, according to the new 2008 Global Soft Drinks report from drinks consultancy group Zenith International. The growth was led by still drinks, the segment embracing a consumer desire for health and wellbeing alternatives, and bottled water, reflecting its natural and calorie free hydration virtues. “Health continues as an increasingly important factor driving purchasing behaviour... ...Read more »
Coca-Cola Amatil Chief Executive Terry Davis has told a business congress in Sydney this morning that he believes Lion Nathan will struggle to up the bid that CCA believes undervalues their worth. Last week CCA, Australia’s largest soft drink bottler, advised that they would fend off the $7.6b bid made by Lion Nathan - Australia’s second largest brewer. Mr Davis claimed the bid was flawed and “half-baked” and argued that the bid undervalues the company and could hurt CCA shareholders,... ...Read more »
The late 2000s have proven to be a challenging period for the US liquid refreshment beverage category, but growth persists as do opportunities. The changes in the US marketplace often present leading indications as to where the Australian market is headed. Many factors confront the industry, which consists of carbonated soft drinks, bottled water, milk, fruit beverages, sports beverages, ready-to-drink tea and coffee, and energy drinks. Some relate to broader economic and social conditions, while... ...Read more »