Blog: Olly WehringPepsi spreads wings beyond CSDs

Olly Wehring | 8 January 2007

In the space of five months, PepsiCo has once again demonstrated its willingness to expand beyond its traditional carbonated boundaries. In August, the company acquired the sparkling juice brand Izze Beverage Co. for US$75m from backers Greenmont Capital Partners and Sherbrooke Capital. Yesterday (8 January), Pepsi sealed a deal to buy the juice and smoothie company Naked Juice Co. from North Castle Partners for an undisclosed amount.

Neither acquisitions risk breaking the bank, but they are strategically important nonetheless.

Izze Beverage Co, for example, only had revenues around the US$25m mark when it was acquired. Such is the demand for drinks outside the CSD category at present, however, that the drinks and snack giant can expect significant growth once its distribution and marketing arms flex their muscles.

As one analyst said today: “Pepsi and Coke don’t make acquisitions of these beverage companies because they can. They see the need.”

Expect much more of the same this year, then.


BLOG

Situation Vacant - Must love whisk(e)y

Do you like whisk(e)y? And, I mean, really like whisk(e)y? Are you at a loose end in the first half of 2017? If so, then I've found just the job for you....

BLOG

Coca-Cola's selfie bottle might be a step too far

Whenever we read anything about Millennial consumers, there is almost always mention of the personalisation trend as well as the importance of social media....

BLOG

Anheuser-Busch InBev execs have a dream - a US$350m-sized one

Ever wondered what fuels Anheuser-Busch InBev's acquisitional drive? Is it naked ambition? Faith? The good of mankind?...

BLOG

Anheuser-Busch InBev's Bud Light ad pull shows not all campaigns can win

Anheuser-Busch InBev is reportedly calling a halt to its Seth Rogan and Amy Schumer Bud Light campaign in the US....

just-drinks homepage



Forgot your password?