Coca-Cola Amatil Ltd. (CCA.AU) Chief Executive Terry Davis said Thursday the present focus in the beer business is on organic growth, indicating the group isn't currently interested in buying Foster's Group Ltd.'s (FGL.AU) beer operations.

"With asset values as high as they are today, you'd say it's very difficult," to justify an acquisition, he said to reporters at the opening of the group's Bluetongue Brewery in Warnervale. He was speaking more broadly about the beverage market and added "if asset values change, then we revisit the model".

Davis said he'd be looking at Foster's first-half results--Foster's recently announced the demerger of its wine and beer operations, increasing speculation that Coca-Cola Amatil might consider buying its beer operations--but he wouldn't comment on whether Coca-Cola Amatil was interested in buying Foster's beer operations.

The company's new brewery will help it grow its premium beer offerings. The group currently has about 10% of the premium beer market in Australia with brands like Bluetongue and Peroni.

John Murphy, managing director of licensed alcohol at Coca-Cola Amatil, said the group plans to launch new beers with its new brewery.

Davis expects the premium beer market to continue to grow, despite an overall slowdown in consumer spending in the first half of 2010.

-By Cynthia Koons; Dow Jones Newswires; +61-2-8272-4691; cynthia.koons@dowjones.com
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