UK: Lucozade, Ribena up for sale - GlaxoSmithKline

By | 24 April 2013

GSK launched a review of the brands this year

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).

Expert analysis

Growth Opportunities in Sports Nutrition

This report details the opportunities, legislative pressures and product concepts driving the sport nutrition industry. Insight is offered as regards the development of the market over the next four years together with the trends that will drive the sector over this period. The content provides market data and examines key examples of industry consolidation and implications for the market.

Sectors: Mergers & acquisitions, Soft drinks

Companies: Coca-Cola Co, PepsiCo, Suntory

View next/previous articles

Currently reading -

UK: Lucozade, Ribena up for sale - GlaxoSmithKline

There are currently no comments on this article

Be the first to comment on this article

Related research

Coca-Cola Co, The in Soft Drinks (USA)

The company is looking to solidify its position as the top US soft drinks manufacturer by broadening its portfolio of non-carbonates offerings through deals like purchasing VitaminWater maker Glacéau in 2007, acquiring a minority stake in coconut wat...

The Coca-Cola Co in Health and Wellness (World)

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 water. This allows the company to benefit from va...

Coca-Cola Co, The in Soft Drinks (World)

The Coca-Cola Company slightly underperformed the world’s soft drinks market amid the recession in Western Europe and slow economic recovery in the US. It is actively expanding in low calorie carbonates to retain consumers and widening the use of nat...

Related articles

just For Subscribers - The week in drinks

Here are the ten most viewed, subscriber-only items on just-drinks this week:

just the Round-Up - The week in drinks

The top ten stories published on just-drinks this week:

US: Coca-Cola Co readies next dividend

The Coca-Cola Co has confirmed details of its latest dividend payment.

Read more on this hot issue

Round Up - Suntory Food & Beverage's Ribena, Lucozade buy

Suntory Food & Beverage has agreed to buy GlaxoSmithKline brands Ribena and Lucozade for GBP1.35bn (US$2.11bn). Read just-drinks' full round-up of the deal here

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page