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

Are you going to London Wine Week?

Here in London, the second Wine Week has kicked off to coincide with UK wine trade event London Wine Fair. ...

BLOG

All aboard the Aperol bus

Commuting in London is a drag. It’s overcrowded, sweaty and rarely goes to plan. In fact, it’s enough to turn a person to drink....

BLOG

Diageo's echo quotes

When it comes to market speculation, a company holds the prerogative to comment or not. Most times it is the latter, but we journalists are always grateful for any quote that we can get....

BLOG

Carlsberg's rapid response sets the right tone

Carlsberg's Russian unit may be grinding down the gears, but its UK marketing team is proving to be no slouches. ...

just-drinks homepage



Forgot your password?