CCA profits drop along with Australian sugar consumption
Coca-Cola Amatil has been hit hard by competition and changing consumer trends, announcing that its profit for the first half of 2017 will decline.
CCA is the bottler of the full range of drink brands owned by The Coca-Cola Company, as well as selling its own branded drinks such as Goulburn Valley, Mount Franklin Water, Kirks and Deep Spring.
CCA also manufactures foods under such brands as SPC Australia (including fruit-based products such as tinned fruits), Weight Watchers, Perfect Fruit and Taylors brands.
In an update to the Australian Securities Exchange (ASX), CCA said trading in its Australian beverages for the year to date has been weaker than last year with all channels experiencing volume and price pressure due to competition and category trends.
CCA said although it is working with The Coca-Cola Company to rebalance its portfolio, more time is needed for initiatives to gain traction.
CCA reported that although its sugary drinks may be struggling, SPC is trading as expected.
Trading is also as expected in New Zealand, Fiji, coffee and alcohol.
“Papua New Guinea is performing well and while trading in Indonesia continues to be impacted by soft market growth, the business is delivering to expectations,” CCA said.
CCA stated it expected its full 2017 financial year underlying net profit to be broadly in line with its 2016 results.
“This is largely driven by challenges being experienced in Australian Beverages,” CCA reported.
Australia’s fall in sugary drink consumption
Australian Food News has previously reported on Australia’s dropping interest in sweet drinks.
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