AUSTRALIA – Coca-Cola Europacific Partners (CCEP) is set to invest an additional US$105.5 million to enhance its manufacturing capabilities in Australia.
This substantial investment will fund the installation of a new Warmfill Line at CCEP’s Moorabbin plant in Victoria, marking the largest single investment in the company’s Australian manufacturing network to date.
The new Warmfill Line aims to meet the growing demand for popular beverages such as Powerade and Fuze Tea, particularly in the sports drinks and no-sugar segments.
The line is expected to have a capacity of 17.8 million unit cases per year, reflecting CCEP’s commitment to expanding its production capacity and supporting its strategic growth objectives in the Australian market.
Orlando Rodriguez, Managing Director of CCEP Australia, emphasized the importance of the investment, stating, “By installing a new line in Moorabbin, we will be able to increase the capacity of the Warmfill network in Australia and continue to distribute more of our great products locally.”
The new infrastructure will include a 4,200 square meter manufacturing hall and a high-speed 640 bottles-per-minute Nitro-Warmfill line.
Additionally, existing facilities will see significant upgrades, including enhancements to water treatment and electrical systems.
This investment is anticipated to improve product distribution efficiency across Victoria, Tasmania, and South Australia, while also contributing to environmental sustainability.
The upgrades are expected to reduce annual transportation by 2.9 million kilometers, cutting carbon dioxide emissions by approximately 3,785 tonnes.
The new Warmfill Line is expected to be fully operational by the first quarter of 2026.
In September 2023, CCEP injected £31 million (US$37.87 million) in the construction of a new canning line at its manufacturing facility in Wakefield, West Yorkshire, UK.
The investment comes after CCEP reported a 2.8 percent decline in volume in Europe, totalling 1.27 billion cases for the six months ended June 28, 2024.
The company attributed the volume decline to adverse weather conditions that impacted sales.
Despite the volume dip, the company’s revenues in Europe rose by 2.4 percent year-on-year to €7.2 billion (US$7.86 billion).
Operating profits were relatively stable, with a slight decrease of 0.6 percent on a reported basis to €882 million (US$962.5M).
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