UK: Lucozade, Ribena up for sale - GlaxoSmithKline
GSK launched a review of the brands this year
GlaxoSmithKline (GSK) has put Lucozade and Ribena up for sale, saying other beverage companies will have a better chance of turning a profit from the brands.
The announcement today (April 24) follows a two-month “strategic review” of the brands, during which GSK said it was considering its options. The decision to sell was revealed alongside GSK's first-quarter results, which saw Ribena sales increase by 2% year-on-year, but Lucozade saled fell by 2%.
“The tremendous growth potential of these iconic brands, particularly outside the core Western markets, could be better leveraged by companies with existing category presence and infrastructure in these regions," the company said. "We have decided to pursue the divestment of these brands, subject to the realisation of appropriate value.”
This month, an analyst said The Coca-Cola Co could be interested in buying Lucozade as a competitor to PepsiCo's Gatorade brand, while Suntory is also a potential suitor. Private equity firms are also reportedly in line to buy, though GSK has not confimed any interest.
A Reuters report today claimed the brands could be worth as much as GBP1bn (US$1.5bn).
The Coca-Cola Co (TCCC) is the leading player in both soft drinks and in HW soft drinks. The company’s strength is based on its diversity of category presence from HW carbonates to RTD tea and bottled...
Suntory Holdings Ltd aims to reinforce its position by strengthening its marketing and promotional campaigns that can offer new value and new ways for consumers to enjoy alcoholic drinks, and also by ...
Suntory Holdings aims to reinforce its core business, carry out internal synergies in the Suntory Group, and develop new businesses. In order to achieve this, the company targets further cultivation o...
- Will Tequila Learn from Scotch Whisky's Mistakes?
- Comment - How to Target Cognac's Mok Generation?
- Is Marketing Twisting the Meanings of Words?
- Sustainability - Walking the Walk on Water
- The Beer Engine that is Africa
- Whyte & Mackay takes on Flor de Caña in UK
- SPI Group US, Canada sales chief departs
- Belvedere proposes name change
- Brown-Forman eyes family ties with board additions
- Castel acquires stake in Belvedere
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Beam Suntory Inc. - Strategy and SWOT Report
- Africa: The Final Frontier for Beer