Australian Beverages Limited Essay

13372 Words May 13th, 2010 54 Pages
Exam case Australian Beverages Limited
Pre-seen information Semester 1 2010

Australian Beverages Limited — Pre-seen information
A. Introduction to Australian Beverages Limited — March 2010
Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit and milk-based drinks. Entry into the snack food market was recently undertaken in response to declining consumption of carbonated soft drinks (CSDs), the company’s traditional area of business strength. This move also enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and
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Total non-alcoholic beverage revenue in Australia was over $10 billion in 2009, including CSDs, bottled water, fruit juices, energy drinks, sports drinks 4, ready to drink teas and milk beverages. Table 1 shows the market share of bottled water within non-alcoholic beverages over the past 10 years and predicted market share to 2014. Table 1: Australian non-alcoholic beverages - market share of volume by category- 1999 to 2014
Category Diet CSDs Full calorie CSDs CSDs Bottled Water Milk Drinks* Fruit Drinks** Sports Drinks Ready to Drink Tea/ Coffee Energy Drinks Total non-alcoholic Beverages 1999 16.70% 46.10% 62.80% 6.40% 8.20% 20.70% 1.50% 0.40% 0.00% 2004 16.50% 41.30% 57.80% 9.50% 9.60% 18.80% 2.20% 1.70% 0.40% 2009 16.30% 34.70% 51.00% 13.30% 11.90% 16.90% 3.70% 2.00% 1.20% 2014 (P) 16.10% 25.30% 41.40% 17.40% 16.00% 14.80% 5.00% 2.90% 2.50% 100.00%

100.00%

100.00%

100.00%

P = Projection * Includes white and flavoured full fat, skim and soy milk beverages ** Includes fruit juice and fruit drinks

Australians consumed 963 million litres of bottled water in 2009. However, Australia consumption of bottled water is significantly lower as compared with the total consumption of the top 10 global bottled water consuming countries. Table 2 shows Australia’s per capita consumption compared with that of the highest consumption per capita countries

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