Boag’s to be sold?

Terry Davis, CEO of Coca-Cola Amatil (CCA), said in August that he would be interested in bidding for brewer James Boag, owned by Philippines food and beverage group San Miguel Corp, if the brand was put up for sale.

“Of course we hear that James Boag is for sale and if that became available we and others would be interested,” Mr Davis told Dow Jones Newswires in an interview in August.

San Miguel said in July that it was reviewing its Australian assets, prompting speculation that brewer James Boag, located on Tasmania, could come up for sale. The brewer would fit neatly into Coca-Cola’s burgeoning alcoholic beverages portfolio, which is focused on the fast-growing premium beer segment. Davis also said his company has not approached James Boag yet about a possible sale.

CCA and its joint venture partner SABMiller will face tough competition for the asset, particularly from brewer Lion Nathan Ltd. Lion Nathan, Australia’s number two brewer, is probably one of Boag’s most ardent suitors. Premium beer brands, especially domestic ones, are very hard to come by. In its quest to acquire a premium brand, Lion Nathan, a few years ago, even tried to take over the family-owned South Australian brewer Coopers – but failed.

Perhaps this time Lion Nathan will get lucky. According to media reports, San Miguel and Kirin Holdings Co., which owns a 46 percent stake in Lion Nathan, have been in talks on the possibility of the Japanese company taking a stake in National Foods Ltd, San Miguel’s wholly owned Australian unit.