01 May 2002
CUB expands RTD capability
Carlton and United Breweries (CUB), a wholly owned subsidiary of the Foster’s Group Limited, has purchased a 65 per cent interest in BCB Beverages Australia Pty Ltd for $13.4 million, including debt.
BCB Beverages currently specialises in the manufacture and packaging of pre-mixed spirit drinks (RTDs) and carbonated soft drinks, including the wholly owned Torquay water and Reef soft drink brands.
CUB will use the facility to manufacture its core RTD brands including Cougar Bourbon and The Black Douglas Scotch, as well as continuing the production of the Torquay and Reef brands.
The purchase will further strengthen CUB’s spirits arm, The Continental Spirits Company and is expected to be EPS enhancing immediately and deliver a premium over the Group’s cost of capital.
Mr James King, Managing Director, CUB, said “The purchase of this production facility further positions CUB to maximise on the growth opportunity in RTDs, which is currently the fastest growing alcohol sector in Australia.”
“The facility gives CUB the flexibility and competitiveness to respond to ever-changing consumer preferences for innovative RTD products which can be leveraged through the combined distribution systems of CUB, Continental Spirits and BCB, providing access to more than 90% of Australia’s liquor retailers,” Mr King said.
BCB Beverages is located at Airport West in Victoria.
Existing BCB Beverages management hold the remaining 35 per cent minority interest, which will be acquired by CUB in three years time as part of a management workout and incentive arrangement.
Tel: +613 9633 2261
Mob: 0418 202 375
V-P Capital Markets
Tel: +613 9633 2641