just-drinks.com September 28, 2009
Issue 491

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Editorial

Olly Wehring

Orangina is the nomad of the soft drinks industry. Previously owned, and subsequently ditched, by both Pernod Ricard and Cadbury, the business may now leave its current private equity owners for a new life with Japan's Suntory.

Suntory's binding offer to acquire Orangina, announced last week, has received a lukewarm response from many observers.

As just-drinks' very own Chris Brook-Carter argues, a deal would enable Suntory to cut its reliance on a mature Japanese drinks market - as all Japan's major drinks firms, including Kirin and Asahi, are trying to do.

Suntory's move for Orangina follows its takeover of Danone's Frucor drinks business in Australia and New Zealand earlier this year.

But, the rumoured US$2.6bn price tag is at a considerable premium to the price current owners Lion Capital and The Blackstone Group paid for it in early 2006 (EUR1.85bn) at the height of the private equity boom.

Plus, there is not thought to be a lot of growth room for Orangina in its own core markets of western Europe.

Elsewhere last week, just-drinks caught up with Diageo's global brand director for Guinness, Brian Duffy, as part of the brand's 250th anniversary celebrations.

Lion Nathan has won the rights to distribute Budweiser in Australia and New Zealand.

Pernod Ricard announced it has sold Italian wine brand Canei, as part of the French firm's EUR1bn divestment plan.

Last but not least, just-drinks passed through Zurich to witness The Coca-Cola Co unveiling full details of its marketing campaign for next year's FIFA World Cup tournament in South Africa.

Until next time...

Olly Wehring, Managing Editor

Web: www.just-drinks.com
Email: editor@just-drinks.com

Twitter: just_drinks

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