Australian Beverages Limited
Examination case Aussie Beverages Limited
Pre-seen data Semester one particular 2010
Aussie Beverages Limited — Pre-seen information
A. Introduction to Australian Beverages Limited — Drive 2010 Australian Beverages Limited (ABL) commenced soft drink manufacturing in 1937. During the 1971s and eighties, the company expanded its refreshment portfolio by entering into different non-alcoholic beverage categories, just like fruit and milk-based drinks. Entry into the snack food marketplace was lately undertaken in response to declining consumption of carbonated sodas (CSDs), you can actually traditional part of business power. This approach also enabled ABL to leverage the strong division capabilities to supermarkets, grocery stores and food channels with the help of adding this kind of complementary foods to nonalcoholic beverages. Even so, CSDs even now accounted for 85 per cent of company earnings in 2004. Tom Dwyer, the current handling director, has been with the business since june 2006. He became a member of the company at any given time when CSD growth was stagnating and shareholder confidence in the company was waning. This experienced resulted in the share value declining by 15 per cent in the couple of years prior to his appointment. In order to restore aktionar confidence, Dwyer established a strategic planning staff within the firm to assess the current product profile and identify organic and acquisition growth opportunities. Out of this review the value of functional excellence was identified and strong investment was made in world class making facilities and systems. Procedure re-engineering was implemented to lessen costs of manufacture and time to marketplace. Having complete the integration of a snack food business acquisition approximately 12 months in the past, Dwyer is now aware that he needs to determine further progress options presented predicted carrying on decline inside the CSD industry. In First month of the year 2010 he asked the ideal planning group to undertake an additional detailed review of opportunities for future progress, specifically determining products and market segments where the organization would have the capabilities pertaining to successful admittance. Bottled water was one sector that was identified, depending on its supporting nature to the existing refreshment portfolio. This industry had been identified as ‘of interest' inside the ABL's 1st strategic assessment in june 2006. At that time the marketplace was regarded too small , unsophisticated. Yet , the Quotes bottled water making industry is growing significantly since this initial review. Dwyer offers requested a detailed review to ascertain whether entry into the domestic bottled water manufacturing industry has become a viable strategic option. If deemed to be a viable tactical option, Dwyer also wants a suggestion whether the ABL should your industry by simply establishing a unique operations or perhaps by targeting an existing competition for acquisition in order to gain quick market share.
W. The Aussie bottled water manufacturing industry
Bottled water is a fastest developing category in the non-alcoholic beverage market in Australia, with sales revenue of $1. 483 billion last year. The major segments of the market include bottled still and sparkling water. Within these two segments, different packaging sizes and types are offered. Normal water can be purchased in a range of one or multi-serve bottles which include 600 millilitre, 1 litre or your five litre bottles from the supermarket or convenience store. Bottled water is also available in bulk packages (that is definitely: 10 lt or greater) for normal water coolers for property or office use. Several types of water as well exist, from naturally found sparkling vitamin waters to purified 2 and niche waters. Developing facilities to get purified water are generally positioned in close proximity to significant water energy suppliers to minimise the transport range from the water source to the purification grow. In contrast, the majority of sparkling standard water manufacturing plants happen to be necessarily concentrated in close...