View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 25, 2022

Royal Unibrew purchase of Aqua d’Or from Danone scrapped

The deal had been agreed back in November 2021.

By James Beeson

Danish drinks maker Royal Unibrew will no longer proceed with the acquisition of the Aqua d’Or mineral water brand from Danone, it has announced.

Free Whitepaper
img

Packaging for the future: embracing circularity and reducing costs

Sustainable and recyclable packaging is more in demand than ever, yet the packaging industry is at a crossroads.

While the traditional practices and old ways of doing business are well-established and understood, avoiding the circular economy is not a viable plan for the long term.

However, this circular shift doesn’t have to be a radical overhaul overnight. A combination of small changes can make a big difference. And these changes can result in cost savings.

Siegwerk is an internationally recognised provider of sustainable coatings and inks for the packaging industry. The company has embraced the circular economy and is setting many standards in sustainability in packaging products while working with major brands.

To learn more about the work of Siegwerk in the circular economy, download this document.

by Siegwerk
Enter your details here to receive your free Whitepaper.

The deal, first revealed back in November 2021, has been scrapped after both parties “determined that they will not be able to fulfil the closing conditions”, a Royal Unibrew statement said.

Royal Unibrew had been expecting to close the deal to purchase Aqua d’Or in the early part of this year, subject to approval from the Danish Competition Authority. However, the statement confirmed that this will no longer materialise.

Just Drinks has contacted both parties for comment.

Last week, Royal Unibrew cut its annual EBIT forecast, pointing to inflation and changing consumer behaviour. It now sees its full-year EBIT reaching “around DKK1.6bn” (US$211.5m) in 2022, lower than its earlier forecast – set before the invasion of Ukraine – of DKK1.7bn to DKK1.85bn.

“We are experiencing unprecedented inflation that is both impacting our cost levels but that also has an impact on consumers and customers,” the Faxe brand owner said in a stock exchange filing. “Our top line is developing satisfactorily, whereas we are seeing pressure on margins in the short term due to the unprecedented inflation that has hit us during the past year.”

The company also pointed to customer destocking in Italy as a factor in its most recent results. Third-quarter revenue for the group stood at DKK3.3bn, up 16% on an organic basis.

In March, Danone’s CEO said the global food and beverage giant would pursue a fix it or flog it approach to breathe new life into parts of its portfolio.

Laying out the path for organic growth and margin accretion, Antoine de Saint-Affrique indicated 10% of Danone’s portfolio could be up for “rotation”.

“We want to do it in a way that is value-creating, which means that if you need to disentangle something in whichever category, you want to do it in a way that doesn’t throw the rest of the category into chaos,” he said.

The company is yet to announce whether or not Aqua d’Or remains up for sale, following the collapse of the deal with Royal Unibrew.

Earlier this month, Danone announced it was to shed its dairy and plant-based business in Russia, a move set to cost the company EUR1bn (US$984.1m).

Beverage M&A round-up, September 2022 – What Just Drinks thinks

Related Companies

Free Whitepaper
img

Packaging for the future: embracing circularity and reducing costs

Sustainable and recyclable packaging is more in demand than ever, yet the packaging industry is at a crossroads.

While the traditional practices and old ways of doing business are well-established and understood, avoiding the circular economy is not a viable plan for the long term.

However, this circular shift doesn’t have to be a radical overhaul overnight. A combination of small changes can make a big difference. And these changes can result in cost savings.

Siegwerk is an internationally recognised provider of sustainable coatings and inks for the packaging industry. The company has embraced the circular economy and is setting many standards in sustainability in packaging products while working with major brands.

To learn more about the work of Siegwerk in the circular economy, download this document.

by Siegwerk
Enter your details here to receive your free Whitepaper.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Drinks