ck, page-20

Interestingly, I read in the paper today that The Coca Cola Company have a world-wide policy of never using Coke for pre-mix alcoholic drinks, therefore their manufacturing contract with Beam & Maxiium will continue to use the generic Cola recipe which was previously used (when Cadbury had the contract).

Also, the contract means that CCA will get the manufacturing margin, plus some extra incentives if they increase volumes (which seems certain, given that CCA can provide much greater market reach).

Although manufacturing contracts are not as high margin businesses as making and selling your own brands, it is a good sideline to have, because it provides economies of scale and stability to a business. This is important with WOW and CML moving into private labels. They still need someone to make that stuff, which means that although CCA might sell fewer, say SPC baked beans, they will pick up private label manufacturing sales.

Anyway, time to write that T3 cheque.