Industry Analysis & Industry Trends
Heavy discounting and changing consumer trends have restrained revenue growth over the past five years. During the five years through 2014-15, industry revenue is forecast to increase at an annualised rate of 1.2%. This includes weaker projected growth of 1.0% in 2014-15, to reach $4.3 billion. Despite these threats, industry growth has received support from increasing energy drink sales and popular diet ranges.
The retail environment has struggled under the weight of escalating domestic and global uncertainty following the global financial crisis. Consumers have generally become less confident, choosing to pay down debt rather than spend on discretionary purchases... purchase to read more
Industry Report - Industry Investment Chapter
The Soft Drink Manufacturing industry in Australia exhibits a high level of capital intensity. For every dollar paid as wages, the industry spends an estimated $0.56 on capital investment. This high level of capital intensity reflects the substantial amount of machinery and automation required in the industry. While labour is important to industry operations, machinery is required across all operations, from manufacture to distribution, with automation increasing across all areas. As a result, capital intensity has increased over the past five years. This trend is expected to continue as automation increases and major players continue to invest in greener bottling technologies.
Coca-Cola Amatil's Project Zero exemplifies this move towards increased capital intensity... purchase to read more