French food giant Danone has confirmed that its Australasian soft drinks arm, Frucor, is under review, following speculation that a sale is imminent.

Danone announced on Friday (29 August) that it was conducting a "thorough review of all potential long-term strategic options for Frucor".

It said the move came "in light of the group's [Danone's] recent refocus on purity and naturality within its waters division", but added the review was only at an "exploratory stage".

The news means that both Danone and Cadbury Schweppes are reviewing their soft drinks businesses in the Australasia region, offering potential pickings for rivals.

Speculation that Danone intends to sell Frucor, which includes the V energy drink, increased last month following reports that the French group had recruited investment bank JP Morgan to advise on a deal.

Coca-Cola Amatil (CCA) has been consistently touted as a potential buyer.

However, CCA managing director Terry Davis told the Australian Financial Review last week that the soft drinks bottler would be interested in the Australian drinks arm of Cadbury Schweppes, should it be put up for sale.

Cadbury has begun a review of the business, which is expected to be complete by the end of the year. One analyst told just-drinks that "it looks like it's on the block".