Australian Beverages Ltd (ABL)
1. What type of organisation is ABL?
ABL was established by a group of enterprising pharmacists who made carbonated soft drinks in their pharmacies. ABL was listing on the Australian Stock Exchange (AXS) on 1996.The current managing director of the company is Tom Dwyer, who has been with the company since 2008. 2. Identify the industry, product segments and value chain.
The industry is the Australian non-alcoholic beverages industry. In this case study, it is focused on the Australian bottled water manufacturing industry.
Product segments :- Carbonated soft drinks (CSD), bottled water, milk drinks, fruit drinks, sport drinks, ready to drink tea/coffee, energy drinks.
Value chain :- Raw material (water supplies,labels, other packaging materials such as glass and plastic resin bottles)->raw material processing->product design->manufacturing->logistics and distribution-> marketing->merchandising and retailing-> sales to end consumer
3. Life cycle of the industry?
Non-alcoholic beverages industry is in mature stage. The industry tends to focus more on introducing different products (milk drink, sports drink, ready to drink coffee/tea and energy drink) other than carbonated soft drinks that experiencing declining consumption, which shows in Table 1 the total CSDs market share had been declining since 2001 (62.80%) to 2011 (51%).
The Australian bottled water manufacturing industry is currently in the growth stage. As shown in Table 1, the market share for bottled water is expected to increase from 13.3% (year 2011) to 17.4% (year 2016). As compared to similar markets, Australian market has potential for a higher rate of consumption and sales growth before it reaches maturity. A recent report by the Global Earth Policy Institute concluded that global consumption of bottled water rose 56.8% to 164 billion litres from 2007 to 2011.
4. What are the key issues