Blog: Is Danone really Pepsi's French fancy?
Chris Brook-Carter | 22 July 2005
If all the speculation proves right, how well will yoghurt and French water wash down Pepsi’s current diet of soft drinks and savoury snacks? The bullish answer is very well indeed.
Danone has a powerful portfolio of brands including its attractive global water business and world-beating yoghurt products. If it can get this acquisition right, from takeover to integration, then it will significantly boost PepsiCo’s non-carbonated and international businesses - areas that are already proving strong performers for the group.
All that said, if reports of a board meeting at PepsiCo HQ today are true, then CEO Steve Reinemund and Co could decide in the next 24 hours that discretion is the better part of valour and walk away from a potential disaster.
From the moment a bid is announced, Danone has the potential to be a metaphorical minefield for PepsiCo. Not only is it likely to prove expensive, some analysts are estimating around US$36bn, but reaction in France to rumours of the impending bid should act as a stark warning.
Rhetoric from some of France’s leading politicians suggest Pepsi will be battling far more than Danone’s board if it launches a hostile bid, which could lead to a drawn out and expensive battle.
Even if the US group beats off the French political vested interests, it may find French consumers and Danone’s unions and management harder to subdue. And, following the potentially bloody takeover battle, as the new owner, Pepsi could ill-afford to loose the support of either group.
It would appear that the folk at the UK arm of Carlsberg have this year found the 'gimmicky' drawer in the marketing office....
It's a popular grizzle and one I'll admit to having on at least one or two occasions… a day. Why do people post photos of their food and/or drink on to my social media feed?...
After a 2014 it'll want to forget, Treasury Wine Estates has some good news....
The garden shed is usually home to some spiders, a lawnmower and a few half-empty paint tins. ...
- Focus - Diageo's FY Performance by Region
- It's not all bad for Diageo - Analysis
- Diageo " knew United Spirits would be complicated”
- Focus - Diageo's FY Performance by Brand
- Diageo upbeat on Scotch prospects
- Challenges remain as Diageo posts flat FY sales
- Edrington appoints new board director
- Britvic appoints SABMiller's Dunn as CFO
- Bacardi creates Bacardi rum marketing role
- Heineken ups sales, profits despite volume squeeze
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global liqueurs insights - market forecasts, product innovation and consumer trends research