Market research
The bidding war for Britvic is hotting up, with Pepsi Bottling Group, now supported by PepsiCo, as the clear frontrunner. But the buyers are understandable unsure about the GBP550 million price tag. While the UK soft drinks market has been increasing at nearly 5% a year, growth is expected to slow down significantly. Growth in juices, in particular, will drop from 6.1% CAGR between 1996 and 2001 to 1.7% CAGR between 2001 and 2005. The rate of growth in carbonates will also fall, but fizzy drinks sales will still increase by an average of 3.3% per year.
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