Blog: Pepsi 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.
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....
- Brown-Forman's march on premium whisk(e)y -Comment
- Will US consolidation leave craft alcohol exposed?
- Are consumers getting tired of consuming?
- Where does AB InBev see the future of beer?
- Should Boston Beer Co put up the For Sale sign?
- Brown-Forman to buy BenRiach Distillery Co
- AB InBev snaps up Italy's Birra del Borgo
- Smirnoff Ice Electric flavours - NPD
- Bacardi rolls out new global Martini ad - video
- Brown-Forman appoints new GTR marketing head
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Consumer and Market Insights: Wine Market in China
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Emerging Drinks Industry Trends