Advent, Coca-Cola Amatil run the ruler over Asahi’s beer, cider brands

Picture: AFP

The sales process for the Asahi drinks brands will launch any day and there are two interesting names that have emerged as starters in the contest.

Private equity firm Advent Partners is understood to have hired Record Point to make advances at the cider and beer brands, while expectations are growing that the $6.7bn Australian-listed drinks group Coca-Cola Amatil will also be a contender.

A year ago, CCA surprised many when it waded into the competition to buy the Pernod Ricard wine operations that were up for sale briefly before being withdrawn from the market.

A move into wine last year would have been a departure from strategy for CCA, but the group has faced the challenge of finding additional revenue streams to soft drinks, which have declined in popularity among health-conscious consumers.

The understanding then was that it was planning to join forces with private equity firm Kohlberg Kravis Roberts, which some also believe could have some interest in the cider and beer brands being sold for Asahi by Rothschild.

The bottling company is known to have a keen interest in acquiring other alcoholic beverages to add to its portfolio, although the US-based Coca-Cola parent company would have the final say.

As for Advent, it owns Australian craft beer business Tribe Breweries, so a deal would be logical for that fund.

The other portfolio that CCA looked at last year was the Lion Drinks and Dairy assets, although it withdrew from the contest before it ended with China’s Mengniu as the buyer.

Already, CCA invests in alcoholic beverages, including trendy craft beer businesses, the Feral Brewing Company in Western Australia and the Australian Beer Company in Griffith, NSW.

It has a partnership with spirits company Beam Suntory.

The other party that is looking at the cider and beer brands is Pacific Equity Partners, as revealed by DataRoom on May 24.

The Carlyle Group is also expected to look at the portfolio through its local company Accolade Wines.

The sale of the drinks brands comes after Asahi agreed to buy Carlton United Breweries last year for about $16bn.

The CUB deal triggered concerns by the Australian Competition & Consumer Commission in December relating to cider and beer markets. The Japanese giant has since proposed to the ACCC to sell off cider brands owned by CUB and beer licences.

The brands on offer equate to about 20 per cent of the Australian cider market, with Strongbow, which is for sale, being about 18 per cent.

Brands up for sale also include Bonamy’s and Little Green, as well as the licences to beer brands Stella and Beck’s.

The cider brands are expected to be the most attractive to prospective buyers. Apparently, the company has already fielded approaches from private equity and strategic groups.

Analysts at Goldman Sachs have said the Coca-Cola brand performed well during the virus shutdown for CCA, but that the company’s management remained concerned about the outlook for the economy.