TCCC, Coca-Cola Amatil take 45pc stake in beverage maker Made Group

Sue Mitchell
October 4 2018
AFR
Two weeks after acquiring Australia’s first kombucha maker, The Coca-Cola Co and its local bottler Coca-Cola Amatil have agreed to buy a 45 per cent stake in Melbourne-based functional beverages business Made Group.
Made owns popular beverage brands including Cocobella coconut water, Rokeby Farms high-protein smoothies and yoghurt, Impressed cold-pressed juices and vitamin enhanced NutrientWater and has annualised retail sales of about $130 million.
The deal was announced on Thursday and followed The Coca-Cola Co’s acquisition last month of South-Australian based beverage company Organic & Raw Trading Co, which makes the MOJO brand of organic, naturally fermented kombucha.
CCA group managing director Alison Watkins said Made Group – founded in 2005 by former Brighton Grammar mates Matthew Dennis, Luke Marget and Brad Wilson – would continue to operate independently.
TCCC and CCA, which sells soft drinks and bottled water to about 115,000 outlets nationally, will help Made expand its market reach and distribution. The company currently sells its products through about 10,000 retail outlets.
“Our aim is to bring the Made range of products to an even wider audience through our expertise and reach in distribution,” Ms Watkins.
“There’ll be no changes to the flavours or ingredients. Made Group co-founders Luke Marget and Matt Dennis will stay on in charge of the business and keep doing what they love – developing and producing a fantastic food and beverage range.”
Terms of the deal were not disclosed. Made, which had been seeking equity partners for about two years, was advised by Macquarie Capital.
TCCC and CCA will each own 22.5 per cent of the company and will have two seats on the Made board. Mr Marget and Mr Dennis will retain the remaining 55 per cent (Mr Wilson sold out a few years ago and now lives in Canada).
Coca-Cola Australia president Vamsi Mohan told The Australian Financial Review the Made acquisition, like that of MoJO Kombucha, reflected the beverage giant’s continued evolution towards being a total beverage company with beverage brands for all occasions.
Ms Watkins told the Financial Review the acquisition was in line with CCA’s accelerated growth strategy, under which the bottler is reinvesting about $40 million of cost savings into prices, marketing, sales, cold drink equipment, digital technology and new products in an attempt to reinvigorate soft drink consumption and reverse a long-term slide in volumes and earnings.
“Part of that plan was improving our position in emerging categories and brands,” she said.
“The Made investment will give us an opportunity to step into these categories by distributing the products faster –  it’s very much in line with that accelerated growth plan.”