USA: PepsiCo postpones All Sport sale to Monarch
Analysts still believe the Quaker deal will receive approval, however concerns have been raised that the sale of All Sport, seen as a prerequisite to Pepsi receiving approval, to Monarch will only see the brand disappear. Fears surround the size of Monarch, which critics say is too small to drive the brand in a market dominated by Gatorade.
According to Datamonitor, the industry analysts, the FTC is worried the merger between Quaker and Pepsi and the arrival of Gatorade in the cola giant's portfolio will diminish the ability of smaller sports drinks brands to compete on store shelves and in distribution channels.
"Word is that the FTC believes the US$13.8bn merger approved by shareholders last month would create an anti-competitive atmosphere within the sports drink market and give the company unfair control over its relationships with convenience stores," said Datamonitor.
"The sports and energy drinks market has recently shown signs of finally emerging as a mature market. The category grew an impressive 7.5% from 1999 to reach US$1.89bn in 2000. Volume jumped 6.4% to reach 679.5m gallons in the same period. Currently Quaker's Gatorade brand accounts for 80% of the market.
"No wonder then that small manufacturers and the FTC are concerned about maintaining a competitive balance. PepsiCo also recently acquired a cousin of Gatorade, SoBe beverages, adding fuel to the competitive fire," Datamonitor continued.
Earlier this month PepsiCo said the PepsiCo/Quaker deal would be delayed until the third quarter as talks with regulators continue.
In the battle of the giants, PepsiCo has stolen a march on Coca-Cola over the last year or so and its performance in the first half of the current fiscal year suggests it is still has the upper hand. ...
A recent report on the UK soft drinks market showed that growth in non-carbonates at the expense of traditional carbonated soft drinks is much less marked in the on-premise sector than in the take-hom...
Functional soft drinks are relatively undeveloped in Latin America in comparison with Europe but there is significant growth potential. Hope Lee of industry analysts, Euromonitor International, examin...
A departing PepsiCo executive is to be handed a US$4.56m package spread over the next two years for his consultancy services....
The Pepsi Bottling Group has signed a letter of intent to acquire Pepsi-Cola Bottling Company of Charlotte (Pepsi Charlotte) for an undisclosed sum....
The Pepsi Bottling Group today reported second quarter net income of US$148m, or diluted earnings per share (EPS) of $0.59. The results were up on the same period last year as the company grew volumes...
Pepsi-Co. has been removed from a Syrian blacklist of companies which have dealings with Israel, according to a report in the official Syrian newspaper al-Thawra....
Pepsi has launched a new 50cl silver-coloured bottle for its Pepsi light soft drink as part of a major advertising campaign to roll out this summer in Spain....
- Most Valuable Spirits Brands in 2017 - The facts
- Most Valuable Beer Brands in 2017 - The facts
- Diageo Africa president O'Keeffe on beer & spirits
- Travel Retail needs a disruptor - Comment
- What the future looks like for Australian wine
- Diageo ready to lock horns with AB InBev in Africa
- Heineken sees Tesco pull SKUs in UK
- Fever-Tree eyes bumper NPD, pack formats for 2017
- Diageo unveils Blender's Batch in the US
- Heineken mulls M&A with $1.75bn notes issue
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Spirit Market in the Top 5 European Countries to 2021 - Market Size, Development, and Forecasts