News

POLAND: Danone's Polish acquisition watered down by US fears

Most popular

Remy Cointreau Performance Trends 2016-2020

Why COVID-19 has restored plastic's popularity

COVID-19 a double-edged sword for CBD

Campari and Cuervo - The next big spirits buy?

How drinks companies can trump the water fountain

MORE

Groupe Danone has agreed to acquire an 88% stake in Poland's leading bottled water producer Zywiec Zdroj.

With a turnover of  €45m in 2001, Zywiec Zdroj is the leader in a Polish market of 1.3 billion litres of water per year, the largest in Eastern Europe. In April 2001, Danone took up a 50% stake in the company, which, the company said is experiencing strong growth.

The takeover has been approved by the Polish antitrust authorities.

Despite the news Dresdner Kleinwort Wasserstein has downgraded the French group to "sell" from "hold" and its target price to €115 from €125 because of the outlook of its water business.

"The arrival of Coca-Cola and PepsiCo in water will impact Danone more than Nestle . Water is 30% of Danone's EBIT (earnings before interest and tax), but nearer 50% of group growth," Dresdner analysts said in a research note.

However Danone has played down fears it is suffering at the hands of the cola giants, particularly in the US market. A spokeswoman said its fortunes were more closely linked to fast growing emerging markets.

The spokeswoman told Reuters yesterday that the US accounted for only 8% of volumes and 13% of sales in its bottled water division, which represents a quarter of Danone's total sales.

"Danone is a small player in the United States. It is much more orientated to emerging markets," the spokeswoman said, adding they represented 40% of its beverage division sales, and 60% of volume growth. 


Companies: Groupe Danone, Nestle

Related Content

Coronavirus threat to Mizone factory looms over Danone's 2020 bottled water sales

Coronavirus threat to Mizone factory looms over Danone's 2020 bottled water sales...

Danone to drop Evian's babies in the US for next 'Live Young' campaign

Danone to drop Evian's babies in the US for next 'Live Young' campaign...

This week in soft drinks & bottled water, featuring The Coca-Cola Co's Moxie and Costa buys, the UK's energy drinks ban proposals and Danone's home water mineralisation play

This week in soft drinks & bottled water, featuring The Coca-Cola Co's Moxie and Costa buys, the UK'...

The Coca-Cola Co's US$5.1bn acquisition of Costa - Analysis

The Coca-Cola Co's US$5.1bn acquisition of Costa - Analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?