Industry Analysis & Industry Trends
A weak retail environment and changing consumer trends have characterised the Soft Drink Manufacturing industry over the past five years, limiting substantial revenue growth. Despite these threats, the growing popularity of higher value sports and energy drinks, and an increasing focus on diet ranges have supported industry growth. As a result, industry revenue is forecast to increase at an annualised 2.4% over the five years through 2015-16. This includes projected growth of 2.2% in the current year, to reach $4.4 billion.
Over the past five years, domestic and global economic uncertainty has led to soft retail conditions and weak consumer sentiment, causing consumers to cut back on spending... purchase to read more
Industry Report - Industry Investment Chapter
The Soft Drink Manufacturing industry exhibits a medium level of capital intensity. For every dollar paid as wages, an estimated $0.30 is spent on capital investment. The level of capital intensity reflects the amount of machinery and automation required in the industry. While manual labour is important to industry operations, machinery is required across nearly all processes, from manufacturing to distribution, with automation constantly increasing across all areas. As a result, the level of capital intensity in the industry has risen over the past five years and the trend is expected to continue as automation grows and major players continue to invest in greener bottling technologies.
CCA's Project Zero program exemplifies this move towards more capital-intensive operations... purchase to read more