Beginning at the end, the week finished on a high note today (4 November) with the announcement of an alliance between PepsiCo and Tingyi (Cayman Islands) Holding Corp.
Speculation around a potential deal piled up earlier this morning after Tingyi released a statement suspending its shares on the Hong Kong Stock Exchange, pending the release of a “notifiable transaction” announcement. The agreement between the two will see PepsiCo exchange its entire bottling operations in China for a 9.5% stake in the beverage business of Tingyi.
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The alliance is sure to significantly enhance PepsiCo’s beverage business in China in the near term. The company currently ranks fourth in the country’s soft drinks market and has been investing heavily in the world’s most populous nation in a bid to narrow the gap with leader The Coca-Cola Co.
Elsewhere, nine-month results continued to roll in. This week saw the release of Hansen Natural, Cott Corp, Coca-Cola Icecek and Reed’s profit and sales figures.
Hansen saw higher costs pull down its nine-month profits, resulting in a 36% drop on the prior-year figure. The company also pointed to operational problems in some of its European regions as contributing to the fall.
Another firm facing up to sliding profits was Coca-Cola Icecek, which saw its profits sink in the first nine months of the year on higher costs and foreign exchange charges. The fall overshadowed a 23% jump in net sales.
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By GlobalDataCott Corp, on the other hand, released a strong set of results with a rise in both net sales and profits, thanks to consumer demand for private-label soft drinks and the group’s acquisition of Cliffstar. However, like many other soft drinks firm, Cott warned that it may have to raise its prices in 2012 to offset the rising cost of raw materials like apple juice concentrate and PET resin.
While Reed’s did not release profit figures for the third quarter, sales were strong and the company is confident that momentum will continue, thanks to a number of product launches during the quarter.
In the innovation arena, Reed’s rolled out a Flying Cauldron Butterscotch Beer in the US in time for Halloween. The product will be available for “as long as there is demand”, the company has said.
Across the Atlantic and soft drinks firm PomeGreat relaunched its pomegranate juice range in the UK to include a packaging revamp and a new ingredient – 100% natural whole-fruit pomegranate extract, PurePlus.
Next week will see the publication of Coca-Cola Bottling Consolidated Co’s, Primo Water‘s and Jamba Juice’s third-quarter earnings results. just-drinks will also be reporting from the UK Bottled Water Industry Conference on 10 November, where speakers will include Nestle Waters UK, managing director, Paolo Sangiorgi, and European Federation of Bottled Waters’ president, Hubert Genieys.
