Coca-Cola Amatil (CCA) will close its South Australian manufacturing facilities from 2019, however this should not affect demand for labels.
CCA announced the shuttering of its facility in Thebarton, Adelaide, in a press release this morning, following a review of its Australian supply chain network. “The review found that further development of our facility at Thebarton in South Australia was constrained by its CBD location, site layout, dated infrastructure and expensive logistics. We will therefore be closing our South Australian manufacturing facilities, principally at Thebarton, in 2019," said Alison Watkins, managing director at Coca-Cola Amatil.
Labelmakers Group, the largest label manufacturer in Australasia, holds the contract for Coca-Cola labels, and printed the personalised stocks for the "Share a Coke" campaign in 2011-12. Rod Bryan, general manager sales and marketing at Labelmakers, said that all label production for Coke is done on a national basis, and he does not expect overall capacity to drop. “We anticipate the overall volume would be consistent, with Coca-Cola Amatil spreading that capacity across the other states, but that’s something we’ll need to verify with them,” he said.
CCA plans to shift manufacturing capacity to Richlands in Queensland, Kewdale in Western Australia, Moorabbin in Victoria, and Northmead in NSW. The Richlands plant will receive a $90 million investment, including a new glass production line and new dairy and juice production capacity. “We need to modernise and invest in new capability across our supply chain to maintain our competitiveness in the market,” Watkins said.