Coca-Cola Shares Down

Shares of Coca-Cola Amatil declined because of competitive discounting and soft consumer spending. Terry Davis, chief executive of CCA, said the company is facing hurdles in its Australian business.

Davis said that consumer spending level remains soft, adding the company has been monitoring the trend over the last one and a half year. Davis also said that competitors’ price-driven activity has likewise affected volume growth.

The chief executive said CCA is expected to post growth in volume and revenue for December. It is looking at four to five percent in profit growth

Two weeks ago, CCA shares slumped by some three percent and closed at $13.56, which is 36 cents lower. An analyst said the current weather in the country may be a factor since the summer months started with a cooler weather.

Davis is, however, more optimistic with its business in Papua New Guinea and Indonesia as CCA operations in the two countries are growing steadily. Its operations in SPC Ardmona and New Zealand, on the other hand, are curtailing earnings growth for the second semester of 2012.

CCA also said that it would soon offer alcoholic beverages in its product line. It would distribute Rekorderlig cider starting Jan. 1, 2014. Rekorderlig is a Swedish brand.

With the addition of the cider brand in its product portfolio, CCA aims to get a significant market share from the growing category of alcoholic beverages industry. Cider sales in Australia grows some 20 percent yearly.