Australia’s Coca-Cola Amatil looks set to follow parent company, Coca-Cola, with a move into the flavoured milk market. 

Amatil refused to comment on any such moves locally, but an analyst with Merrill Lynch said that Australian dairy producers could gain from a shift by Amatil into the lucrative business. Milk producers would find the flavoured-milk business particularly attractive, as margins are about three times higher than those of standard milk products. In 2000, 1.93bn litres of milk was sold as fresh milk, but only 8.6% of that was sold as flavoured milk.