Dr Pepper Snapple Group has agreed to pay US1.7bn for Bai Brands

Dr Pepper Snapple Group has agreed to pay US1.7bn for Bai Brands

Yesterday, Dr Pepper Snapple Group (DPSG) agreed to purchase Bai Bubbles owner Bai Brands, in a deal worth US1.7bn. Here, just-drinks takes a closer look at the acquisition and the target company.    

  • As one of DPSG's allied brands, Bai has been part of the company's national US distribution network since 2014
  • Last year, DPSG strengthened its ties with Bai, through a US$15m minority stake purchase
  • Yesterday's deal is expected to complete in the first quarter of 2017
  • With the acquisition, DPSG plans to capitalise on the growing consumer trend towards better-for-you products
  • DPSG's distribution already accounts for 65% of Bai sales in the US
  • DPSG expects total Bai net sales of $425m in 2017, with operating profits forecast to hit $79m
  • The company expects the purchase to add $132m of incremental sales and $43m in incremental operating profits in 2017

What is Bai Brands?

  • The company was founded in Princeton New Jersey in 2009, by Ben Weiss
  • Bai is the Mandarin Chinese word for 'pure' - as well as an acronym for 'botanical antioxidant infusions'

The Bai Brands portfolio comprises:

  • Bai Antioxidant Infusions, in flavours including Brasilia Blueberry, Congo Apple Pear and Limu Lemon
  • Bai Bubbles, including Bogata Blackberry Lime, Peru Pineapple and Jamaica Blood Orange flavours
  • Antiwater - purified water infused with antioxidants
  • Cocofusions - coconut, fruit and antioxidant infusions
  • Supertea, which features Rio Raspberry Tea, Tanzania Lemonade Tea and Paraguay Passionfruit Tea flavours
  • The new Bai Black - in sparkling 'classic' flavours such as Kohala Kola, Rioja Root Beer and Jambi Ginger Ale