‘Enhanced water’ MADE for Coca-Cola Amatil?

Sarah Thompson, Anthony Macdonald & Joyce Moullakis
February 15 2017
AFR 

Harried bankers running on Coke (the black liquid kind, of course) may have a new tipple of choice in the coming months as interest grows in Melbourne-based “healthy” drinks company MADE. 

Street Talk can reveal the group, which makes vitamin-infused bottled water, coconut water, high-protein breakfast drinks and cold-pressed juices with extended shelf life, received a number of inbound inquiries before Christmas, with Coca-Cola Amatil and a group of trade buyers and private equity firms casting an eye over the rapidly growing business. 

Sources said it should be noted there is no sale process at the moment and no parties have started due diligence. This column understands that the company, founded by Brighton Grammar school mates Matthew Dennis, Luke Marget and Brad Wilson made it clear they wanted to focus on a series of pre-Christmas product launches and keep managing the growth of the firm.

Recent product launches have included coconut yoghurt and Schnobs cold brew coffee. The business has revenue of more than $65 million.

That said, the team founded MADE in 2005, so after more than decade building the business it would seem a natural time for the founders to explore their exit options. 

Sources said should the green light be given to start a process, the boys have Macquarie Capital’s consumer team on speed dial. 

And Macquarie’s pitch to Coca-Cola Amatil would not be too hard to write. CCA told investors all about its growth in “still beverages” at an annual shareholder day in October, pointing out that enhanced water drinks were the highest growth in the sector with a 25 per cent compound annual growth rate over the past two years.

That trend would have played into the hands of manufacturers including MADE.

CCA has worked hard to build its bottled water business, but it’s competitive and expensive; a business like MADE would provide a way to get in to beverage categories that are actually growing.

Lion’s Berri Juice Co and Asahi’s Schweppes are also likely to be interested.

It’s not just MADE’s products that has piqued the interest of buyers.

The firm has invested more than $20 million into ultra-clean processing technology that can extend the shelf life of its products, such as fresh milk and cold-pressed juice, from around 30 days to 100 days, which makes them a much better bet for supermarkets and other retailers.