Coca-Cola Europacific Partners (CCEP) and Beam Suntory are concluding their 16-year partnership in Australia and New Zealand, effective upon the expiry of the contract on June 30 and December 31, 2025, respectively.
The companies said the move is aimed at maximising the companies’ strengths and align with their respective alcohol-related strategies.
Since 2007 in Australia and 2015 in New Zealand, CCEP managed sales and distribution of Beam Suntory’s spirits portfolio and the manufacture, sales, and distribution of its alcoholic ready-to-drink (RTD) range.
Peter West, regional MD for Australia, Pacific, and Indonesia, with CCEP, said the company is proud of the results and capabilities built over the last 16 years.
“It’s been an exceptionally successful partnership, achieving rapid growth and driving strong category leadership, including recently becoming the MAT market leader in alcoholic RTDs in Australia,” said West.
For the remainder of the contract, he continues, it will be business as usual for customers.
The company said it plans to continue marketing and distributing alcohol beyond the expiry of Suntory contacts and looks at alcoholic RTD drinks as an “attractive proposition” given its substantial growth in both countries.
Ending the contracts will continue to drive its ambition to further align as the bottler of its brand partner, The Coca-Cola Company, and free up “much-needed” capacity to support its growing portfolio in Australia and New Zealand.
West added that the company still plans to launch new offerings in both countries, aligned with The Coca-Cola Company.
“Alcohol is a dynamic and important category, and when you look at the growth in alcoholic RTD beverages worldwide, two of the most developed markets are Australia and New Zealand,” he explained.
“CCEP’s experience in manufacturing alcoholic RTD beverages, our relationships servicing over 21,000 customers across the sector, and our deep consumer and customer knowledge all position CCEP well for a great future in alcohol.”
Philippines deal
Meanwhile, Coca-Cola Europacific Partners also said on Wednesday it intends to jointly acquire Coca-Cola Beverages Philippines with Aboitiz Equity Ventures (AEV) for US$1.8 billion in an effort to become the world’s largest Coca-Cola bottler by revenue and volumes.
Reuters reports that the deal to buy Coca-Cola’s Philippines business in cash will be on a 60:40 ownership structure between CCEP and Philippines conglomerate Aboitiz. CCEP has signed a non-binding term sheet and is in advanced discussions with AEV regarding a potential joint transaction, the company said in a statement.
CCEP bottles and sells Coca-Cola products in Western Europe, Australia and New Zealand.
