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.

UK soft drinks market (liters million), 2001-05

2001
2005
Carbonates
5,757
6,531
Juice
1,621
1,737
All soft drinks
7,600
8,507
Source: Datamonitor, 2001:
“Drinks On-the-Go 2001:
Quantifying and targeting new drinks opportunities”

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