a. What type of organization is Australian Beverages Limited (ABL)?
ABL is an Australian public listed company operating in multi-beverage business. It commenced operation in 1937 with its first manufacturing plant opened in Sydney in 1938. After a series of market expansions, ABL is currently the second largest company in Australia non-alcoholic beverage industry. The company is run by Tom Dwyer, the current managing director, who has been appointed since 2005.
b. What industry, product segments/markets does ABL operate in?
ABL is currently the second largest company in Australian non-alcoholic beverage industry. With the exception of bottled water, ABL operates in almost all product segments of non-alcoholic beverage market, that is, carbonated soft drinks (CSD), fruit and milk-based drinks, etc. It has also moved into snack food market through acquisition of several small businesses. Its core activities include manufacturing, distribution and marketing.
c. What is the current life-cycle position of the industry?
Non-alcoholic industry
➢ The non-alcoholic beverage industry is at the growth stage of its life cycle. This is evidenced by:
(1) Consumption of non-alcoholic beverage in Australia increased form 179.7 liters per capita in 2005 to 228.5 liters per capita in 2009, representing a 27% increase.
(2) As Australian per capita consumption follows US pattern, Australian’s current level of 63% of US per capita consumption indicates significant opportunities for growth.
(3) According to Table 4: revenue for non-alcoholic beverage has increased from $7199m to $10449m between 2003 and 2009, and is projected to grow another $3728m in the next 6 years. The actual and projected growth rates are 45.1% and 35.7%, respectively.
(4) Firmly established focus toward health and wellbeing is also ensuring strong future growth for non-alcoholic beverage.
➢ The Australia bottled water industry is at the growing stage of its life cycle. This is evidenced