March 1, 2010
just-drinks.com editor's weekly highlights
Quofore white paper download: Retail Execution for BRIC & Beyond
It was a week of bombshells on just-drinks last week. The biggest came on Thursday (25 February) when Coca-Cola Co announced that it would acquire the North American operations of Coca-Cola Enterprises.
Given PepsiCo's deal to acquire its own major bottlers, which coincidentally was completed at the end of last week, we should probably not be too surprised to learn that Coca-Cola is treading a similar path. But, the firm's previous briefings against such a move kept many observers in the dark.
Coca-Cola's move only includes North America, so it's not as far-reaching as PepsiCo's deal. However, both firms expect to reap similar levels of synergies from their respective buyouts and the moves are certainly set to change the face of the North American soft drinks industry.
On a strategic front, both companies need to cut costs in a North American market that is stagnant from a volume point of view. Extra funds are required for the push into emerging markets like China, Russia and India. At the same time, the continent's soft drinks market is no longer just about Coke and Pepsi - the diversity of functional drinks, energy drinks and waters demanded by today's consumers necessitates that the firms bring their bottling operations in-house to make them more efficient.
The other bombshell dropped earlier in the week, when Diageo launched a startling tirade against Bacardi in the row over Captain Morgan's move to the US Virgin Islands. The 13-page press release made for fascinating – albeit exhausting – reading, serving as the latest twist in a complex and continuing saga. For the best possible explanation about just what the heck is going on, click here.
And keep it tuned to just-drinks for all future developments.
Until next time...
Olly Wehring, Managing Editor
All-new research from just-drinks provides the latest global market analysis and forecast figures for the premium beer market. Discover what the future holds for this category and where the growth opportunities lie.
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It’s already been christened, in typical journalese, the “Rum Wars”. It’s prompted angry exchanges in the Caribbean, questions on Capitol Hill and, most recently, a vitriolic attack by the world’s biggest drinks company on one of its rivals. So just what is going on with Diageo’s new Captain Morgan distillery? Richard Woodard picks apart Captain Morgan's current adventure.
For the vast majority of the drinks industry, 2010 will be nothing if not challenging. This briefing forms Euromonitor International's take on what will likely face the spirits, wine, beer and soft drinks sectors in 2010 and suggests key trends, companies and brands to watch over the coming months.
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