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.
Whisk(e)y companies spend a lot of money and effort ageing their products for that premium taste....
PepsiCo created a stir last week with the news it is testing a product called Caleb's Kola, with some in the media claiming it was the beginning of a new “craft soda” category....
SABMiller's bid to widen the appeal of beer is very much in evidence at its latest 'House of Peroni' - with beer cocktails and a bigger bottle for the Italian lager brand on offer. ...
Here's a round-up of the big stories on just-drinks last week, featuring PepsiCo, SABMiller, the Scotch whisky category and the US wine market....
- Diageo's future brighter than present suggests
- Diageo's Q1 Results by Region
- Analysis - Remy's Cognac "dead-cat bounce"
- SABMiller's troubles fuel M&A rumours
- Focus - Remy Cointreau's H1 Performance by Brand
- Moët Hennessy unveils first Travel Retail outlet
- Diageo puts Beckham centre stage in Haig Club ad
- United Spirits sees Q1 net loss
- Diageo Q1 sales dip "in line with expectations"
- TWE unveils Penfolds range after CEO's "bold move"