August 10, 2009
just-drinks.com editor's weekly highlights
The main story last week saw PepsiCo announce that it has secured a deal to gain full control of both its major bottlers, PepsiAmericas and Pepsi Bottling Group, after raising its bid from US$6bn to $7.8bn.
Analysts have treated the news positively, believing that the move will help PepsiCo to cut costs, as well as bulk up earnings and sales, in what the soft drinks giant has described as a "weak" North American beverage market.
As the dust settles, the focus will inevitably shift to what this deal means for the structure of the drinks market.
In particular, would Coca-Cola Co consider following suit? For all their great rivalry, the two soft drinks giants are rarely far out of sync, whether it is investing in emerging markets or launching new products.
Speculation briefly swirled last year that Coca-Cola Co was looking to to take full control of Coca-Cola Enterprises (CCE). However, following PepsiCo's April announcement that it was looking to buy its bottlers, a senior CCE source told us at just-drinks that CCE and Coca-Cola Co were not, at that stage, looking to follow the PepsiCo example.
Still, if PepsiCo's integrated system proves successful, it may become hard for others to resist following suit.
Elsewhere, with the half-year results season in full-swing, we took a look at what the results say about the health of our industry.
We also considered one of the paths the wine industry could take to get itself out of its current rut – Could less be more going forward?
Until next time...
Olly Wehring, Managing Editor
The last few weeks has seen a large number of companies report their interim results, an opportunity to see whether the performance across a wide range of drinks companies from around the world supports the suggestion that the global economic situation is improving. Ben Cooper takes a closer look.
With the drinks industry not always getting a good press, it really needs to make its case before governments and international organisations. As a result, effective lobbying is crucial for the drinks industry on the national and international political scale. Here just-drinks takes a look at how the drinks industry goes about its lobbying business and focuses on who takes its message to political power brokers around the world. It’s a tough job, but the rewards of an effective lobbying strategy can pay dividends many times over in terms of legislation that does not punish the sector and government policy that is realistic as well as effective.
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