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Australian Beverages Ltd

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Australian Beverages Ltd
CPA 117: GLOBAL STRATEGY & LEADERSHIP
CASE STUDY: AUSTRALIAN BEVERAGES LTD (ABL)

WHAT TYPE OF ORGANISATION IS ABL?
Company Type: Australian Public Company, Limited by Shares * ABL is a listed company on the ASX (1996) * Commenced operations in 1937 * Moved into Non-CSD’s in 1984 starting with fruit drinks (acquisition of fruit juice manufacturer in VIC) * Entered milk market in 1990 (acquisition of manufacturing facilities from a dairy co-operative) * Entered snack food and complimentary foods market * Operates on a multi beverage strategy (product range has been expanded to cover all categories of the non-alcoholic beverage market. * IS NOT INVOLVED IN BOTTLED WATER SEGMENT OF INDUSTRY! * In 2011, ABL was the second largest supplier of non-alcoholic beverages

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.

Notes:
CSD (carbonated soft drinks) is expected to decline.
Carbonation is the process of dissolving carbon dioxide in water.
The only major non-alcoholic beverage not produced by the company now is bottled water.
Bottled water was the fastest growing category in the non-alcoholic beverage market in Australia.
Consumers are becoming more health conscious and changing their drinking habits away from CSDs to healthier beverages.
Hydrate Water and Fountain Springs are potential acquisition targets for review!

MODULE 2 ANAYLSIS (EXTERNAL ENVIRONMENT)
How would you define the industry: Non-alcoholic beverage industry
(industry – as a group of organisations or business units producing close substitutes)
ABL
* Operates in the Australian non-alcoholic beverage industry * Currently second largest competitor in non-alcoholic

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