Coca-Cola’s health push continues with acquisition of Australia’s Made Group
05 Oct 2018 --- Australian beverages manufacturer and distributor Coca-Cola Amatil and The Coca-Cola Company are to jointly acquire a 45 percent minority interest in Australia-based Made Group. The acquisition is the Coca-Cola Company’s latest move toward realizing a portfolio that includes a variety of healthy options. Financial terms were not disclosed.
The Made Group’s portfolio includes cold-pressed juices, high-protein smoothies, probiotic milk, yogurts, coconut water and cold-brew coffee. Made Group is known for leading Australian beverage brands including Cocobella, Rokeby Farms, Impressed and the company’s first brand, NutrientWater, which was launched in 2005.
The Coca-Cola Company has over the past months announced a number of deals and acquisitions underlining its ambition to become a total beverage company. Last month, the company acquired Organic & Raw Trading Co., the maker of Australian kombucha brand. It also reached a definitive agreement to acquire UK-headquartered coffee chain Costa Limited for £3.9 billion (approximately US$5.1 billion). In August, Coca-Cola acquired a minority ownership stake in Bodyarmor – a fast-growing line of premium sports performance and hydration beverages. It is also eyeing CBD for its potential in functional beverages.
Through this partnership, Made Group will reportedly continue operating independently, while being supported by Coca-Cola Australia and Coca-Cola Amatil to grow market reach and distribution.
“Our aim is to bring the Made range of products to an even wider audience through our expertise and reach in distribution,” says Alison Watkins, Coca-Cola Amatil Group Managing Director.
No changes to the flavors or ingredients are planned and Made Group co-founders Luke Marget and Matt Dennis will continue to lead the company.
Made Group co-founder Luke Marget says the company established a strong culture of innovation, and its ability to move quickly and tap into emerging health trends has been a key driver for its success.
“We will continue to run the business with the same great people making the same products in the same way. What we will now be able to do is introduce our products to more people both locally and abroad.”
The investment is an important link in the Accelerated Australian Growth Plan for Coca-Cola Amatil and Coca-Cola Australia, which aims to bolster performance in attractive growth categories, embrace innovation and explore mergers or acquisitions where they fit with the existing portfolio, Watkins notes.
Vamsi Mohan, President of Coca-Cola Australia, says that the investment is yet another example of how Coca-Cola is transforming into a total beverage company.
“The Made Group’s capability in agile innovation across its range, which includes premium juices, dairy and coconut water, is the perfect complement to our existing portfolio and growth plans and will help us ensure we provide Australians with beverages for all occasions,” he adds.
“Our focus on improving the everyday lives of Australians aligns perfectly with Coca Cola’s strategy of becoming a total beverage company,” says Made Group Co-Founder, Matt Dennis. “To help us accelerate this vision there are currently plans underway to significantly expand our manufacturing footprint in Melbourne with a new 30,000 sqm state-of-the-art production facility in the final stages of development.”
