Beverage companies Beam Suntory and Frucor Suntory have announced a $3 billion multi-beverage partnership in Australia and New Zealand for premium spirits and non-alcohol segments.
The combined company will become the fourth-largest ANZ beverage group in Oceania taking over “full end-to-end control” of its portfolio in manufacturing, sales, and distribution.
The deal follows an announcement yesterday by Coca-Cola Europacific Partners (CCEP) and Beam Suntory that they would end their 16-year partnership in Australia and New Zealand, effective upon the expiry of the contracts on June 30 and December 31, 2025, respectively.
Despite the ownership overlap, the two companies are not merging, but partnering up.
Frucor Suntory CEO, Darren Fullerton, said the new venture is about “bringing the best” of Suntory to Oceania.
“With the ability to accelerate our growth trajectory, we strongly believe it will redefine market dynamics and offer more consumer beverage moments from sunrise to sunset, unlocking innovation for our customers across retail and hospitality industries.”
Mark Hill, MD of Beam Suntory Oceania, said the collaboration demonstrates the company’s belief in the growth potential of the Australian and New Zealand markets.
The business has also made a $400 million investment in the construction of a new net zero facility in Ipswich, Queensland which will complement its current manufacturing operations in Auckland.
The new Queensland site will become home to additional beverage processing, packaging, warehousing and distribution operations and will be able to produce 20 million cases initially.
It is expected to be operational by the middle of next year and will assist in manufacturing more than 50 million cases in the future.
Although preparation is currently underway, the partnership will only become effective from mid-2025 in Australia and 2026 in New Zealand.
