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Dr Pepper Snapple Group owns a minority stake in Bai 5-owner Bai Brands |
Bai 5-owner Bai Brands is exploring a sale, according to a Reuters report.
Citing people familiar with the matter, Reuters said earlier this week that the company could be worth US$2bn. A spokesperson for Bai told just-drinks that the firm would not comment on the story.
Bai is one of Dr Pepper Snapple Group's 'allied brands'. DPSG paid $15m for an unspecified minority stake in the company last year.
Following the report, the company's share price fell back markedly, closing yesterday 4.3% down on Monday's close.
Speaking after the release of the company's full-year results earlier this year, DPSG CEO Larry Young said the group's allied brands portfolio would become much larger over the next decade. Young said the brands allow the company to use its large-scale distribution network to participate in emerging growth categories "where we don't currently have a brand presence".
Founded in 2009, Bai Brands is based in Princeton, New Jersey. Bai 5 contains five calories and is infused with coffeefruit and flavoured with fruit juices.
In July, Bai appointed former Nestlé Waters president Michael Pengue as its first chief strategy officer.
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