Coke buoyant on growth; to focus on beer segment

Australian beverage major, Coca-Cola Amatil (CCA), is expecting high single-digit growth in earnings before interest and tax for the first half of the current year, brushing aside speculations that the food and beverages industry is also facing problems due to recession.

In an update at its annual meeting in Sydney on Friday, CCA chief executive Terry Davis said volume and revenue growth had been strong in Australia this year, even though people were drinking more at home and less at restaurants and cafes.

Davis also said that the company is pursuing a strategy of intense growth in the beer segment through its partner SABMiller.

"With our organic growth strategy in beer... we're not concerned how long it takes us to get a bigger presence in the Australian beer market. We're taking this gradually," Davis said.

Amatil's market share in the premium beer category rose to 8 per cent through its Pacific Beverages joint venture with global brewing giant SABMiller.

The company's A$120 million expansion at its Bluetongue Brewery on the Central Coast will be finished by March, Davis said, adding that Amatil would consider aggressive competition for tap beer sales once the expansion was completed. About 30 per cent of Australian beer is sold on tap.