Amatil Update... Sodastream has to at least be a small part of Amatil's nightmare
Whilst there has been an improvement in volume and market share in the Australian beverage business in the third
quarter, fourth quarter trading to date is not seeing the expected post-election uplift in consumer spending. Group
Managing Director, Terry Davis said, “The non-grocery business has continued to grow volumes in the second half,
however consumer demand has been more subdued than expected. While we have seen some improved momentum
in the Australian grocery channel, with carbonated beverages returning to growth and an improvement in market
share, the aggressive competitor pricing activity has continued which has limited price realisation in the half to date.”
As it pertains to the majors, taxation is a constant obstacle and will continue to put pricing pressure on the CSD category. It will be interesting to hear commentary about this development in the coming quarters for the Mexico and France regions.