Terry Davis could do with a beer. Seriously.
Ever since the Coca Cola Amatil boss was forced to offload his local Peroni franchise after the SAB Miller takeover over Foster’s necessitated a brand reshuffle, Davis has been doing it tough, pining for the day when he could get back into the brewing game.
While he extracted a good price, Davis was never in beer for a quick turnaround. And the fallout from that transaction has begun to bite.
Turnover dropped 3.4% for the first half to $2.36 billion, net earnings fell 12.3% to 215.9 million and the full year guidance was downgraded by 4%, a development Davis described as regrettable.
The situation wasn’t helped by the continued onslaught of imported private label products in Coles and Woolworths supermarkets, driving beverage earnings lower by 10%.
Papua New Guinea was a problem as well, although the situation in Indonesia was far rosier.
A deal with US brewer Molson Coors to distribute its premium beers would be a first step back into the brewing market but it would hardly fill the gap created by its loss of Peroni.