Asahi Beverages has bought Allpress Espresso to make a move into the $1 billion coffee market

The Japanese drinks giant behind Victoria Bitter, Pepsi and Gatorade, is expanding into coffee.

Robert Irevasi, the chief executive of Asahi Beverages. Picture: Supplied

Asahi Beverages, the Japanese drinks giant behind Victoria Bitter, Pepsi and Gatorade, is expanding into coffee.

Asahi’s announcement that it is buying Allpress Espresso comes at an interesting time for the drinks market in Australia and New Zealand with the recent takeover of Coca-Cola Amatil by a European bottler.

CC Amatil has a leading coffee brand in Grinders and its future within its new owners, Coca-Cola European Partners, remains unclear and could be the start of a shake-up in the coffee industry.

Asahi Beverages chief executive Robert Iervasi told The Australian the deal and timing of the acquisition of Allpress, which was founded by Michael Allpress in Auckland in 1989, was not related to the competitive landscape or CC Amatil’s takeover.

Instead, it reflected Asahi’s multi-beverage strategy and an admission that coffee was a gap in its portfolio.

Asahi completed a $16bn purchase of Carlton & United Breweries last year.

“Obviously we are buying this business to expand into the coffee category; for us, the acquisition will add a coffee offering to our current portfolio of products and brands from CUB to our non-­alcoholic business and the reason for our acquisition of the Allpress business is consistent with our multi-beverage strategy that we have embarked on in the Oceania region across Australia and New Zealand,” he told The Australian.

Mr Iervasi said in discussions with its customers when it was selling them other Asahi brands, the topic of coffee, both hot and iced coffee, came up as a product missing from its beverages offer.

“It helps us meet more of our customers buying needs, because it consolidates the fact that we are a multi-beverage provider and as Australia’s leading beverage business, we have the opportunity to make available to our customers more product offerings, including now coffee.”

The purchase of Allpress by Asahi Beverages marks Asahi’s entry into Australia’s $1bn fresh coffee market as it expands its portfolio to meet these consumers’ needs.

Asahi wants to use Allpress to grow its “coffee credibility” in the region, Mr Iervasi added.

Allpress has about 5 per cent of the Australian wholesale food services coffee bean market, taking in venues such as cafes and restaurants, which in 2020 comprised about half the total coffee market. It sells more than 1500 tonnes of coffee beans annually worldwide — about 120 million cups — to boutique cafes and restaurants.

Founder Mr Allpress said after 30 years, the time was right for the business to go to the next level: “The expertise, craftsmanship and relationship-based culture it has developed mean it’s very well-placed to take this next step.”