Coca-Cola Amatil is set to launch a new flavoured milk product in Australia, but when it comes to the company's expansion into alcohol, the focus will be on beer, not wine, its chief executive there says.
The beer focus was why the company was not interested in buying
any assets of Foster's Group Ltd, which this month sold five more of its wine club and services businesses to focus on its global beverage operations.
Coca-Cola Amatil chief executive Terry Davis said from Sydney that by the third quarter, the company would have its first test flavoured milk product, as it also planned to build a new brewery as it moved further into the alcoholic beverages market.
This week, the company said it was on track to deliver earnings growth and proposed to sell its South Korean soft drink business and focus on Australia and New Zealand where its competitive advantage is strongest.
It is aiming to become the third player in the Australian beer market by the end of 2012, after Foster's and Lion Nathan.
Mr Davis told Sky News that with respect to buying Foster's businesses, it did not add up because the company was more focused on the beer market rather than wine.
"We have enough sales ad distribution to do it (grow the alcoholic beverages market) organically. Foster's doesn't add value."
He said the Foster's wine business had a different ethos.
With respect to the sale of the South Korean business, Mr Davis said the company now had a short list of bidders.
"We will put this together by the end of next week."
- AAP
