Suntory Oceania is starting to take shape ahead of 2025 separation from CCEP

March 27, 2024
By Cody Profaca

Suntory Oceania has today announced it has secured the exclusive manufacturing, sales, and distribution rights for CELSIUS energy drinks in Australia. 

The news marks a major milestone in the progression of Suntory Oceania, a partnership formed between Beam Suntory and Frucor Suntory in April last year following the news that Beam Suntory and Coca-Cola Europacific Partners (CCEP) will be parting ways in 2025

Suntory Oceania was launched with a worth of $3 billion, and is on track to become the fourth largest beverage group in Australia and New Zealand by mid-2025. 

“As we build Suntory Oceania, we are delighted to be partnering with CELSIUS to evolve our portfolio and deliver new growth opportunities for all retail partners,” said Darren Fullerton, CEO at Suntory Beverage & Food Oceania.

“CELSIUS is a brand which is breaking new ground and delivering a totally different consumer experience.”

The incorporation of a well-regarded energy beverage such as Celsius into its portfolio will help to establish Suntory Oceania’s position in the category. According to Datamine Market Eco data, the overall Oceania beverage market is expected to grow by 4-5% over 2024, with the energy drinks sector contributing almost 30% of this growth. 

“We’re pleased to introduce our refreshing, great tasting and functional CELSIUS energy drinks to consumers in Australia and New Zealand,” said John Fieldly, Chairman and CEO at CELSIUS.

“We expect to continue our international growth at a measured pace, targeting strategically important energy drink markets and employing our proven playbook to build a strong and passionate consumer base.”

Suntory Oceania started preparations last year in order to be fully operational once the current agreement with CCEP ends. The contracts between Beam Suntory and CCEP will terminate on 30 June 2025 in Australia and on 31 December 2025 in New Zealand. 

Part of the $3 billion partnership includes the creation of a $400 million FMCG manufacturing and distribution facility in Ipswich, Queensland. The new facility will contribute to the production of its portfolio of 40+ brands including prominent liquor labels such as Jim Beam, Maker’s Mark, Hibiki, and Canadian Club. Its products will span categories as diverse as premium spirits, RTDs, juice, water, soft drinks, coffee, energy and sports drinks.

Since 2007 in Australia and 2015 in New Zealand, CCEP has been responsible for the sales and distribution of the Beam Suntory spirits portfolio and the manufacture, sales, and distribution of its RTD portfolio. This agreement will continue unchanged up until the contracts’ 2025 expiry dates. 

Suntory Oceania’s agreement with CELSIUS will see manufacturing, sales and distribution begin in the final quarter of this year, with anticipated growth expected throughout 2025.

“We are excited to launch our strategic plan in Q4 2024 across the retail landscapes of Australia and New Zealand, and we look forward to accelerating growth in 2025,” said Tony Guilfoyle, Chief Commercial Officer at CELSIUS.

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