Coca Cola to acquire collapsed ready-to-drink vodka maker Billson’s Beverages

Global soft drinks giant Coca Cola has emerged as the secret buyer of collapsed ready-to-drink vodka maker Billson’s Beverages less than five months after it went bust.

Coca Cola on Friday announced it had entered into an agreement to acquire the cult favourite regional Victorian beverages brand and its range of pre-mixed spirits.

It comes just over two weeks after the business was thrown a lifeline and avoided liquidation after creditors agreed to a deed of company arrangement.

Established in 1865, Billson’s is owned by Nathan Cowan and his wife Felicity after they took over in 2017.

It expanded rapidly in the past few years as demand for its canned vodka-based, ready-to-drink alcohol products accelerated.

In July, Billson’s appointed McGrathNicol as administrators after succumbing to a slowdown in consumer spending and heavy increases in government excise. It had debts of up to $21.3 million and owed National Australia Bank about $12m.

Coca Cola vice president of marketing ASEAN and South Pacific Matthias Blume said the deal would allow it to expand in the growing ready-to-drink category in Australia.

“We are excited to add Billson’s to our portfolio of Australian brands,” he said, adding the Billson’s team had built the brand through innovative flavours.

“We are looking forward to expanding on those foundations and bringing great-tasting Billson’s products to even more Australians.”

The husband-and-wife owners will continue to produce their cordial, soda and beer range — under a new brand name — and operate the historic brewery at Beechworth in the north-east of Victoria.

Nathan said it was thrilled to have entered into an agreement to sell Billson’s to a company like Coca Cola. He believed the brand was in the “best possible hands for it to thrive long into the future”.

“We’ll also get a chance to focus more on some of our other products including soda, liqueurs, cordials, beer and even spring water that’s sourced from our 150-year-old red brick well on-site,” he said.

Coca Cola has no current place to expand Billson’s outside Australia.

Billson’s is best known for their ready-to-drink vodka, craft beer and cordial that is sold in chains such as Endeavour-owned Dan Murphy’s and BWS, along with Coles’ Liquorland and independent liquor stores.

The acquisition is expected to be completed by the end of January.