In general, free trade will benefit Australian economy, due to increasing competitiveness on a global scale. (e.g. lower living cost and higher export)
The following points, I believe are particularly relevant to CCL:
1. SPC Ardmona,Australia’s largest fruit and vegetable processor, owned by CCL, will have the potential export "AUS-made" food to Japan, China etc (those with free trade agreement). SPC Ardomna was heavily criticized by investors, for its continuing operation, recently. I believe having core/iconic business will play a key in global market, when more consumers are looking for the quality/brand image of the product, amongst other cheap alternatives.
2. SPC Ardomna, is a great diversification business. The proven logistics/packing/marketing approach for coco cola can be used in promoting SPC. As CCL continues to innovate, it will do well in the long run, when the demand for food is growing and its supply of drink/food can ramp up significantly, by selling different fruit/veg. (not as climate-dependent, as (e.g.) graincorp)
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CCL Price at posting:
$11.40 Sentiment: None Disclosure: Not Held
