Australia's consumption of CCA's CSD (carbonated soft drink) and water products is by far it's biggest earner. The problem with it is the potential saturation of the market and the stupidity of its competitors in driving the market down. What happens is (and has happened at least twice before) the competitors "buy" a market share which never works and brand loyalty takes over when the price goes back to sustainability. So history dictates it will be short term pain if indeed price is the problem. I can distinctly remember Lyon Nathan giving the Pepsi franchise away as they couldn't sustain the loses of the then discount war.
So far as Indonesia is concerned (and as I have said before) the volume per head is very very low which gives massive potential for improvement given the population of well over 12 times Oz. The trick is of course how to do it and I have confidence that CCA will find a way. One thing they have never done is rest on their laurels. While they have well over 60% of the market I'm not sure I would call it a monopoly when there is work to be done.
CCL Price at posting:
$12.09 Sentiment: LT Buy Disclosure: Held
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