News: Coca-Cola in beer market comeback

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Coca-Cola Amatil Limited (ASX:CCL) is set to re-enter the beer and cider market this week, following a two-year hiatus.

 

CCA, which is led by group managing director Terry Davis, has been locked out of the Australian beer and cider market since late 2011, when it sold its stake in Pacific Beverages to joint venture partner SABMiller, before SAB's $12.3 billion takeover of Foster's.

 

As part of the deal, CCA agreed to a two-year non-compete clause in Australia, but it was allowed to buy the Foster's Fijian brewery and rum distillery.

 

CCA has also teamed with family-owned winemaker Casella -- the company behind Yellowtail -- to build a brewery alongside the Casella winery in Griffith, NSW.

 

Starting in January, CCA will also have the domestic rights to Swedish cider brand Rekorderlig - the fastest-growing cider in the Australian market. 

 

Coca-Cola Amatil generated a net profit of $216 million in fiscal 2013.