Coca-Cola Amatil and Beam Suntory extend relationship

Posted by AFN Staff Writers on 11th June 2015
Beam Suntory has announced it will be extending its sales and distribution contract with Coca-Cola Amatil by another two years.
Beam Suntory has announced it will be extending its sales and distribution contract with Coca-Cola Amatil by another two years.

Beam Suntory has announced it will be extending its sales and distribution contract with Coca-Cola Amatil by another two years.

Commencing 1 July 2015 the new contract extends
the partnership in Australia by a further two years,
to 30 June 2025.

The current agreement started in 2011 and the fact it will now run until 2025  is a major mark in Coca-Cola Amatil’s alcohol sector expansion plans.

Beam Suntory is the American manufacturing arm of Japanese beverage company, Suntory Holdings.

Coca-Cola Amatil and Beam Suntory between them control a 20 per cent share of the Australian spirits and ready-to-drink (RTD) beverage industry, which is said to be worth $5.5 billion annually.

Coca-Cola Amatil already has the Australian distribution rights for Beam Suntory’s Jim Beam Bourbon and Canadian Club beverages. Coca-Cola is typically marketed with Jim Beam in the Ready-to-Drink sector either as “Coke and Bourbon” or just “Coke and Jim Beam””.

The contract extension will see new alcoholic drinks join the Coca-Cola Amatil family. These drinks will include Midori and Japanese whiskies Yamazaki, Hakushu and Hibiki.

The two companies say they will be using the time extension as an opportunity to co-invest in marketing, sales and brand development.

The announcement comes not long after Coca-Cola Amatil recently reported that it was confident it would be able to secure a more profitable future.

In early 2014, when the Japanese-owned Suntory surprised the world with its acquisition of Jim Beam, could hinder the Coca-Cola Amatil strategy of expanding into the alcohol sector. However, it appears not to be the case.