Bai Brands – What has Dr Pepper Snapple Group bought for US1.7bn? – Focus

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’

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