Asahi combines Australian beverages portfolio

There will be changes for the local operations of Japanese beverage giant Asahi as its new Asahi Premium Beverages division absorbs the business of its subsidiary Independent Distillers at Laverton, Victoria, and the new division combines with Schweppes (also owned by Asahi) to offer a one-stop supply option for the licensed trade, as was announced in early October 2013.

Asahi already owned Schweppes when it paid private equity investors PEP and Unitas Capital USD 1.3 billion for trans-Tasman brewer and pre-mixed spirits company Independent Liquor in 2011. The deal did not make Asahi terribly happy. In February this year it dragged both PEP and Unitas to court seeking damages from them over claims that the private equity funds dishonestly inflated earnings figures for Independent.

While the court case drags on, Asahi decided to rename the liquor business, which produces pre-mixed drinks such as Vodka Cruiser as well as Asahi’s flagship Super Dry beer for the local market, as Asahi Premium Beverages. The company also produces Somersby cider under licence from Carlsberg and is to relaunch craft beer brand Cricketers Arms.

Chief executive Greg Ellery was quoted as saying that the company would also begin selling soft drinks from the Schweppes portfolio in order to take advantage of its existing relationships with liquor customers.

Mr Ellery noted that the sales model was one already used by Coca-Cola Amatil, which has been steadily expanding its liquor business via partnerships with spirit brands such as Jim Beam and will re-enter the beer business in December this year.