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.
Would the thought of working in a morgue stop you from drink driving? ...
You would be forgiven for thinking that the US cider boom is over. Sales growth of as much as 90% in the past few years has shrunk to double figures. ...
The drinks industry could do more to benefit from new technology. ...
The soft drinks world is abuzz today over what an executive shake-up at PepsiCo might mean to on-going speculation over CEO Indra Nooyi's successor....
- A-B InBev and its SABMiller divestments - Focus
- SABMiller in Cent'l & E Europe - What is for sale?
- Paddy Irish whiskey - The Facts
- Is the wine industry confusing its consumers?
- Where does AB InBev see the future of beer?
- Pernod Ricard to widen Our/Vodka sales reach
- Remy Cointreau names new Travel Retail exec
- Leonardo DiCaprio joins Runa drinks board
- Pernod in talks to sell Paddy whiskey to Sazerac
- US wholesalers point to Absolut decline - report
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global travel retail insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Carbonates in India
- Consumer and Market Insights: Spirits Market in the US