Published on 18/01/2017 by Punchmedia

Coopers Serves it up at Australian Open

Coopers Brewery is banking on tennis fans to drive a new spurt in growth in its Victorian beer sales after securing a five year deal to serve its product throughout the Australian Open tennis tournament. Coopers secured the beer rights at the Australian Open which began this week, along with the pouring rights for concerts held at the Melbourne Park venue, which is expected to deliver a jolt to sales which have been climbing steadily in Victoria but to date have lagged behind the strong growth achieved in NSW. Coopers has taken over the beer rights at the Australian Open from Heineken, which relinquished them after 20 years to concentrate on a global Formula One car racing sponsorship. Forecasts of hot weather throughout the Australian Open, which will test the world’s best tennis players, should help drive extra sales for Coopers at the tennis and beyond. Coopers has about 5 per cent of the $14 billion national beer market, a long way behind the two giants of the industry, CUB and Lion, which is owned by Japan's Kirin Corporation. The two large brewers hold a combined share of close to 90 per cent. Check out bars, restaurants and cafes for sale across Australia here.

Industry Structure

Industry players have undergone major changes in ownership over the past decade. In December 2011, SABMiller acquired Australia's then-largest brewer, Foster's Group, now trading as Carton & United Breweries (CUB), for $10.5 billion. Two years earlier, Japanese brewer Kirin Holdings Company acquired Lion Pty Ltd, which was then trading as Lion Nathan Limited. These international acquisitions have left Coopers the largest Australian-owned beer manufacturer, with an estimated industry market share of 4.7%. Lion and CUB combined command an estimated 84.7% of the Australian Beer Manufacturing industry. Even before the respective takeovers, Lion and CUB had been locked in a battle for market supremacy. For most of the 2000s, CUB had the highest market share, as its flagship brands Victoria Bitter, Carlton Draught and Pure Blonde outperformed Lion's brands in most parts of the country. However, Lion has been more successful in shifting its focus to craft and premium beers to increase its market share. As a result, Lion has moved into the top position in the industry. SABMiller's market share has declined as Victoria Bitter has lost its dominant market position. Meanwhile, Lion's XXXX brand has gone from strength to strength in Queensland. The larger industry companies have noticed the value of owning craft brewers and have tried to edge into the product segment over the past five years. Lion's 2012 acquisition of Little World Beverages (owner of craft brewers, Little Creatures and White Rabbit) helped the company lift its market share. Meanwhile, SABMiller has expanded its production and distribution of its popular craft beer brands, including Fat Yak. Check out franchises for sale here. * With AFR

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Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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