By Ross Kelly
SYDNEY--Coca-Cola Co.'s (KO) Australian distributor said profit
would fall this year because of weak consumer demand and aggressive
discounting by competitors.
Coca-Cola Amatil Ltd. (CCL.AU), 29%-owned by the U.S. beverage
giant, said it expected earnings before interest and tax through
December to be 5-7% below the previous year's 895.5 million
Australian dollars (US$846 million). The profit measure excludes
significant items like writedowns or gains from asset sales.
Coca-Cola Amatil, which distributes Coke products in Australia,
New Zealand, Fiji, Indonesia and Papua New Guinea, has been cutting
prices for its Australian soft drinks to compete with Pepsi Co.
(PEP), which launched Pepsi Next here in February last year.
Fourth-quarter trading to date hasn't experienced the uplift in
consumer sentiment the company expected after national elections in
September, the company said in a statement.
Write to Ross Kelly at ross.kelly@wsj.com
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