Premium Essay

Australian Beverage

In: Business and Management

Submitted By ranisharma
Words 640
Pages 3
Intro
• ABL, in 2011 largest supplier of non-alcholic beverages
• Manufactures soft drinks, fruit drinks and milk based drinks
• 2008 CSDs growth stagnating and shareholder confidence in the company was wanning
• MD Tom Dwyer sought to reduce reliance on CSDs by investing in product development of the other NAB and diversified into the Australian snack food market, complementary food product to NAB
B The Aust bottled water manufacturing industry
• 2011 fastest growing NAB
• Growth stage, increase in per capita consumption
• Consumers have become health conscious and change their preference from CSDs to healthier beverages such as water
1. Demand and consumption trends
• Total NAB revenue in Aust was over 10b in 2011
• Aust consumed 963 litres of bottled water in 2011
• However it is lower as compared to other similar markets have higher rate of consumption, hence potential for growth
• Increasing awareness of the obesity problem in Aust and established focus toward health and wellbeing is ensuring strong future growth for healthy beverages
• Introduction of sugar-free or diet CSDs not appealing to older Australians
• Bottled water advantages: small sized plastic bottles easier to carry, resealable and has become a fashion accessory.
2. Industry segmentation 2 types still and sparkling water
• Still water
• 76% consumption, consumed for hydration and thirst satisfaction
• Fat free, calorie free thirst quencher
• Consumers not satisfied with tap water
• Convenience major factor more widespread leisure activities and expansion of travel
• Sparkling water
• 24% consumption in 2011.
• Refreshment berverage when dining out than hrdration.
• Eau de Vivre world premier sparkling water brand
• Avg price of sparkling water is hif=gher than still as increased manufacturing costs to carbonate, different closure types to retain carbonation, costs of…...

Similar Documents

Premium Essay

Australian Law

...decision judicial review is the authority vested to review laws, court decisions, policies, or executive powers relevant to subjudice matters. The judicial reviews have been imposed in many states in search of equity and fair judgments. Judicial review has been made part of Australia’s legal process although there are no clear provisions in the constitution. According to Mark Tunshets,( Jones, Ian. The anisminic revolution in Australian administrative law: an analysis of extended jurisdictional error. Turramurra, N.S.W.: Local Legal, 1998. Print.) Judicial review in Australia has a lot of authority since it is only the high court that can interpret the constitution. Judicial review in Australia is complicated by clause 5 of the constitution. This clause provides that all the amendments done by the commonwealth parliament are binding to Australia. This is because the courts mandated to interpret the law must decide if the law is binding to Australia (Canberra, 2005). The chief justice Marshall asserted that judicial review is incredibly paramount in the Australian legal system(Fordham, Michael. Judicial review handbook. 5th ed. Oxford: Portland, OR :, 2008. Print.). In 1951, justice Fellugar proposed that the principle of Madison v. Marbury is adopted as axiomatic(Johnston, Richard E.. The effect of judicial review on federal-state relations in Australia, Canada, and the United States. Baton Rouge: Louisiana State University Press, 1969. Print.). This is because the many......

Words: 2684 - Pages: 11

Premium Essay

Australian Economy

...commodity and asset price inflation (a constraint on economic growth), emerging protectionism and currency imbalances (resulting in lower exports and higher imports). Inflation The media article in essence describes factors that affect inflation. The RBA is predicted to not raise cash rates from 4.75% until May, which help determine the interest rate, a tool helping to dampen demand and thus lower demand-pull inflation. Cash rates were kept on hold as he underlying rate of inflation was around 2.25% which is between the RBA’s target of 2-3% and the recent natural disasters has harmed output (increased interest rates will soften growth so it is not needed when there is low inflation). Also, the “large exchange rate appreciation” of the Australian dollar at the end of 2010 will hold inflation as imported inflation is decreased due to foreign goods and services becoming cheaper. Consumers are being cautious with spending and as a result this will lowers demand-pull inflation only in the short-term, however in the long term this will not persist. Without the floods the RBA may raise the cash rate sooner than May, a dominant factor being the unemployment rate falling to 5% in January which close to the non-accelerating inflation rate of unemployment (NAIRU) where a movement pass this situation of full employment will trigger inflation due to higher wage demands a cause of more specifically cost-push inflation. Strong domestic economic growth of Australia during the global......

Words: 1563 - Pages: 7

Premium Essay

Australian Beverages

...Understanding the external environment (Industry attractiveness) 1. Identify the industry, product segments and value chain. The industry is the Australian Non-alcoholic beverage industry. Currently, Australian Beverages Ltd is the second largest competitor behind Butlers Corporation. Industry consolidation has been occurring but is not expected to continue in the future due to the relatively high market shares held by major competitors. Core operations cover processing and bottling (not retailing). Product segments include CSD (in decline stage), Diet CSD, Fruit Drinks, Milk Drinks, Energy Drinks, Sports Drinks, and Ready to drink coffee/tea. Entry into the snack food market was recently undertaken. 2. What is the current life cycle position of the industry? The Australian Non-Alcoholic Beverage Industry is at the mature stage of its life cycle. Whereas, the bottled water manufacturing industry is currently in growth stage. Major segments of the bottled water industry are still water and sparkling water. 3. What have been the key issues affecting historical and future industry growth? What was their impact or their likely impact and the overall assessment of the industry’s future growth? Key Issues influencing growth, using PESTEL Model (Analysis of industry as a whole including bottled water industry. Trends in broad industry also impact the bottled water industry) FACTOR ISSUE Historical / Future NATURE OF IMPACT (+ / = / -) Politics  Import Tariffs – only affects...

Words: 976 - Pages: 4

Premium Essay

Australian Beverages

...(formerly Chasseur Chickens Pty Ltd), looked across at the Chicago skyline as the plane descended. With only six months remaining on his contract as managing director of the Australian operations, he reflected on the significant changes that had taken place since the Chasseur board had agreed to be acquired by Notting Foods Inc. in December 2011. His thoughts then turned to the board update he was giving the following day on the Australian business, including:  a review of the last 12 months’ performance and forecast for the 2014 financial year  an update on integration of the Australian operations and  a discussion about the limited success of expansion into the Australian meat processing industry and exporting to Asia. It was now 18 months since the acquisition by Notting, and the shine was quickly fading off what had appeared at the time of acquisition to be a relatively straightforward integration. Financial performance was ahead of budget and, more significantly in Brown’s view, at the highest levels ever achieved by the Australian operations. This had been achieved through tight fiscal control and modest turnover growth. However, the strong cost control focus had resulted in a sharp rise in unrest of the Australian workforce. Of major concern to Brown was the growing intervention by several Australian unions into the business operations, as evidenced during recent redundancies. Union presence in the business had always been minimal, with senior management – and the......

Words: 13329 - Pages: 54

Premium Essay

Australian Beverage Limited

...Australian Beverages Ltd Facts: a) Started business since 1937 b) In 2013, the company was the second largest supplier of non-alcoholic beverages. c) Due to declining consumption of CSDs, ABL focus on growing new products and entering new non-alcoholic beverages categories. d) Integration of a snack food business over 12 months ago, this latest acquisition enables AML to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels. e) In 2013, CSDs accounted 68% of company revenue. f) Listing in ASX in 1996 g) Moved into Non-CSD’s in 1984 starting with fruit drinks (acquisition of fruit juice manufacturer in VIC) h) Entered milk market in 1990 (acquisition of manufacturing facilities from a dairy co-operative) i) Strategy: To satisfy Australia’s thirst by being a manufacturer of non-alcoholic beverages for every occasion in every location. Aim: ABL intends to further reduce dependence on CSD’s by 2017 and increase market share of non-CSD so that CSDs will represent less than 40% of company revenue as part of its multi-beverage strategy. Facts - Water manufacturing a) The Australian bottled water manufacturing industry is currently in the growth stage. b) A recent report by the Global Earth Policy Institute concluded that global consumption of bottled water rose 56.8% to 164 billion litres from 2009 to 2013. c) Many old Australian are not switching to sugar-free versions......

Words: 1231 - Pages: 5

Premium Essay

Australian Grocery Stores Industry

...consumption is forecast to increase by 2.6% in 2010, but growth is expected to drop to just 1% in 2011 as the Australian economy, and in turn consumer confidence, is hurt by a slowdown in Chinese demand Key Trends Dairy Industry Dynamism – National Foods has again demonstrated its commitment to the country, announcing in April 2010 that it was to invest an additional AUD5.5mn (US$5.1mn) in its milk processing plant in Malanda, Queensland, on top of the AUD1.2mn (US$1.1mn) already spent on the plant in the previous eight months. The company also plans to invest AUD55mn (US$49mn) expanding its Crestmead dairy plant. These investments can be seen as an effort by the company to remain competitive amid increasingly tough operating conditions. Also in this vein, in May, Murray Goulburn Cooperative (MGC) entered into a joint venture with French multinational Danone in a bid to improve its ability to compete and manage volatile dairy prices, while also lifting its domestic competitive position. By entering Australia, Danone will benefit from the high-spending market. Foster’s Comes To A Decision – After much speculation over what Foster’s Group would do with its underperforming wine business it announced that it would be completely demerging its beer and wine divisions. It is expected that Foster’s beer unit will receive particular attention from potential takeover partners. While the Australian beer market is a mature one, which does not allow for explosive growth opportunities, it......

Words: 34457 - Pages: 138

Premium Essay

Australian Beverages Limited

...Australian Beverages Limited A. A brief introduction of ABL Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1970s and 1980s, the company expanded its beverage portfolio by entering into other non-alcoholic beverage categories, such as fruit and milk-based drinks. Entry into the snack food market was recently undertaken in response to declining consumption of carbonated soft drinks (CSDs), the company’s traditional area of business strength. This move also enabled ABL to leverage its strong distribution capabilities to supermarkets, convenience stores and hospitality channels by adding such complementary food products to non-alcoholic beverages. Nevertheless, CSDs still accounted for 90 per cent of company revenue in 2004. Tom Dwyer, the current managing director, has been with the company since 2005. He joined the company at a time when CSD growth was stagnating and shareholder confidence in the company was waning. In order to restore shareholder confidence, Dwyer established a strategic planning team within the company to assess the current product portfolio and identify organic and acquisition growth opportunities. Having finalized the integration of a snack food business acquisition just over 12 months ago, Dwyer is now aware that he needs to identify further growth options given predicted continuing decline in the CSD market. In January 2010 he asked the strategic planning team to undertake a detailed review......

Words: 349 - Pages: 2

Free Essay

Australian Beverages Limited

...1 执行总结 ................................................................................. 4 1.1 1.2 1.3 1.4 1.5 1.6 项目背景 ....................................................................................................... 4 项目分析 ....................................................................................................... 4 公司与战略 ................................................................................................... 5 市场分析 ....................................................................................................... 5 营销策略 ....................................................................................................... 6 投资与财务分析 ........................................................................................... 6 2 背景分析 ................................................................................. 7 2.1 2.2 2.3 2.4 二恶英毒性 ................................................................................................... 7 二恶英危机 ................................................................................................... 7 二恶英检测的强制性 ................................................................................... 9 现有二恶英检测:检测难、检测贵、耗时长 ......................................... 10 3 项目分析 ............................................................................... 11 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 产品简介 ..................................................................................................... 11 核心技术 ....

Words: 1620 - Pages: 7

Premium Essay

Food & Beverage

...Introduction: We are the members of the management team of the Food and Beverage Department of a 5-star hotel located in city center. The occupancy rate of the hotel has been stable for the past three months at the level of 85%, but the profit generated from our department has been rather unsatisfactory, compared with our historical data and the performance of our competitors. Aims: The aim of preparing this business proposal is to illustrate our plan of how to improve the profitability of our department. In order to improve the profitability of our department, we need to identify what are the (1) problems as well as how to tackle those problems and (2) what else we can do. (1) Problems and Solutions: (Profit sensitivity analysis) By using the method of profit improvement, Profit Sensitivity Analysis, we can identify some key factors of a business, which are products, services (about staff and equipments), the prices and the atmosphere and mood. More important is that the existed problems of our department, in a certain extent, can negatively affect the key factors. Therefore, we need to take the initiative to tackle those problems as soon as possible. At first, the most significant factor should be the quality of our products. Thus, we should be concentrated on our ingredients and dishes. However, we are facing some problems. Some of our ingredients come from Japan and the nuclear problem leads to some negative effects like some of the materials are......

Words: 2704 - Pages: 11

Premium Essay

Australian Beverages Ltd

...A. The Implications for corporate governance and financial institutions In Enron’s case, we may see that the principle weakness of corporate governance today is the excessive concentration of power in the hands of top management. Enron involve allegations of massive accounting fraud and huge losses in shareholder value. In May 2002, the Business Roundtable released its Principles of Corporate Governance. This is a set of principles intended to assist corporate management and boards of directors in their individual efforts to implement corporate governance best practices. 1) Role of CEO - i) The CEO, with senior management, operates the corporation on a daily basis. In addition to having the requisite skills and experience, the CEO should be a person of integrity who takes responsibility for the corporation adhering to the highest ethical standards. ii) CEO certification. CEO has to assess the adequacy of the procedures and the diligence of carrying out the procedures for verifying the accuracy and completeness of information provides to investors. 2) Role of board of directors – i) Effective directors are monitors the business operations. The board’s most important function is the selection, compensation and evaluation of a well-qualified and ethical CEO. ii) The non-management members of the board, under the oversight of a committee made up of independent directors, should annually review the performance of the CEO and participate with......

Words: 839 - Pages: 4

Premium Essay

Australian Beverages

...And deservedly so. Despite her credentials, Sue Morphet took a walloping pay cut from her predecessor, to the tune of keeping many Australians in jobs for longer than they otherwise would have. This is not, and should not be an issue about Sue Morphet. Pacific Brands had no choice but to move their manufacturing overseas. Had they not, Bonds, and the company's other iconic brands would disappear from the Australian landscape. Shifted Mfg base to China – to offset high local mfg costs. - Reduced/streamlined a number of brands- More product focus- Less than 100. - Cost cutting measures introduced – shutting down 10 local factories and cutting 1800 jobs. - Reducing cost base, focusing on margin and bedding down new systems and processes across the company. Despite all the criticism and challenges she faced as a surgical leader, especially with respect to job cuts, she was able to achieve the turnaround for Pacific brand. MODULE 5 : MAKING STRATEGIC CHOICES EVALUATING STRATEGIC OPTIONS : With reference to Pacific Brands 1. APPLICATION OF RUMELT’s EVALUATING CRITERIA : ( pg 5.17) Four Components: a) External Consistency: Industrial Globalization was leading many local manufacturers to shift work offshore to take advantage of lower cost options. Pacific Brands was one of the last of the Australian producer still having the local manufacturing base. Sue Morphet’s strategy to move production to China perfectly fit the......

Words: 744 - Pages: 3

Premium Essay

Australia Beverage Ltd

...Australia Beverage Ltd (ABL) 1. What type of organisation is ABL? o ABL was established in the 1938’s. The company is now a publicly listed entity, having been listed since 1996 on the ASX. o Tow Dwyer (TD) is the MD who joined in 2008. During that time, the company was experiencing low shareholder confidence and low growth of its traditional area which is carbonated soft drinks (CSD). TD was able to relief the company with successfully strategic planning and now ABL became the second largest non-alcoholic beverage manufacturer in Australia. 2. What industry, product segments/markets does ABL operate in? o ABL is in the Australia non-alcoholic beverage industry. ABL is the second largest non-alcohol beverage manufacturer in Australia and is not far behind the industry leader, Butlers Corporation. Their core activities is producing a diverse range of non-alcoholic beverages from carbonated soft drinks (CSD), milk drinks, fruit drinks, sports drinks, ready-to-drink tea/coffee and energy drink as well as snack food products. o Unlike other competitors, ABL is currently not in bottled water industry but the company see an opportunity in going into producing bottled water to offer a wide range of products in order to move from the second largest non-alcoholic beverage manufacturer to the largest non-alcoholic beverage manufacturer. The bottled water industry consists of two segments which is still water and sparkling water. Further, a recommendation is......

Words: 1339 - Pages: 6

Premium Essay

Australian Bottle Industry

...There are mainly two styles of bottled water: sparkling, and still water. But there are many variations of these waters, which undergo different processes and encompass different characteristics. Sparkling or carbonated water, is usually consumed as a refreshment beverage, whilst still or non-sparkling waters are consumed as drinking water. WHO IS DRINKING BOTTLED WATER? Consumer research suggests that bottled water is consumed by people of varying age groups and occupations. The large majority however tend to be young singles and couples, in particular females aged between 14-35 years. Generally bottled water consumers can be described as being more health conscious, contemporary and socially aware. SO WHY DO PEOPLE DRINK BOTTLED WATER? YOU NEED IT Regardless of the seasons and the weather, your need for water remains the same. Remember that 95% of human blood is water. HEALTHY CONCIOUS LIVING In these health conscious days water makes a great contribution to overall hydration.It is fat and kilojoule free and a great thirst quencher, which makes it a great choice for the health conscious consumer. Many people wish to get back to basics and drink something that is refreshing and pure. Some people also wish to avoid certain chemicals used in the treatment of public water supplies, such as chlorine and fluoride, and are therefore turning to the chemical free alternative. CONVENIENCE With the development of more widespread leisure and activities and the expansion......

Words: 1284 - Pages: 6

Premium Essay

Australian Beverage Ltd

...Australian Beverages Ltd 1. Identify the industry, product segments and value chain Industry – Australian bottled water manufacturing industry Product segments includes stilled water and sparkling water Value chain – (upstream) Access to water supply > Manufacturing > Packaging > Distribution > Retailers > Consumers (downstream) 2. Current life cycle position of the industry Australian bottled water manufacturing industry is at the growth stage of its life cycle. It is evolved out of the soft drink manufacturing industry during the 1990s, hence considered a relatively new industry. It is the fastest growing category in the non-alcoholic beverage market in Aus in 2011. Growth is demonstrated that despite from a relatively low base compared to other more established beverages, it shows increase per capita consumption. This is shown in Table 1 that bottled water growth from 2001 to 2011, increasing significantly from 6.4% in 2001 to 13.3% in 2011 (i.e. a 107.8% increase over the period). It is also projected to increase by 30.8% from 2011 to 2016. Despite having Energy drink, ready to drink tea/coffee, sports drinks and milk drinks are also experiencing growth; however bottled water has the largest market share of all the other growing non-alcoholic beverages. A recent report by Global Earth Policy Institute shows that global consumption water rose 56.8% to 164 billion litres from 2007 to 2011. Australians consumed 963......

Words: 3032 - Pages: 13

Free Essay

The Australian Dairy Industry

...pwc.com.au The Australian Dairy Industry The Basics The Australian Dairy Industry From family farm to international markets Key points œ Australia is a small producer of milk but is the worldfs third largest dairy exporter as 50% of production is exported. œ The Australiafs dairy industry is Australiafs third largest rural industry, ranking behind wheat and beef, and has a gross value of $4 billion. œ Australia produces a range of dairy products including milk, milk powder, yoghurt, butter and cheese. œ The Australian dairy industry is concentrated in the south-east of Australia, Victoria is the largest production state, however other states have significant dairy industries. œ Victorian production is typically seasonal and enters the export market which makes it prone to volatile global prices. Other dairy production areas (i.e. much of NSW) supply the domestic market which requires year-round production. œ The dairy industry is heavily reliant upon water availability; the industry is currently facing uncertainty over water policy. œ Since deregulation in 2001, the industry has undergone rationalisation. This has left a core of efficient producers that are able to compete against international competitors who are heavily subsidised. Contents Key points i 1 History of the industry 1 2 What and where 2 2.1 Map of production 2 2.2 What is produced where 2 3 Challenges and advantages 3 4 Major markets 4 5 Milk and its products 5 5.1......

Words: 4554 - Pages: 19