Big brands M&A in global elephants dance
In the period immediately following the election of Donald Trump as president of the United States, the US stock market experienced an upward surge. At the same time, there has been significant merger and acquisition activity involving large global food and beverage brands. This article reports on some of the bigger acquisition bids and the Australian links or implications.
Heineken acquires Brasil Kirin
Amsterdam based brewer, Heineken, has entered into an agreement with Japan’s Kirin to acquire its Brazil business for EUR 664 million.
Brazil Kirin owns one of Brazil’s largest beer brands, Schin. Schin is not currently sold in Australia.
Heineken and Kirin beer are both distributed in Australia through Lion.
Brazil Kirin is also responsible for Baden Baden beer and Eisenbahn beer, along with Itubaina soft drink, few of which are known in Australia.
Chairman and Chief Executive Officer of Heineken, Jean-Francois, said the acquisition represents a step-change in scale in an exciting beer market.
“It reiterates our commitment to the Brazilian market and confidence in our ability to generate attractive returns over the long-term across all segments of the market,” he said.
Dr Pepper Snapple Group acquires Bai Brands
On the 31 January 2017, the Dr Pepper Snapple Group completed its acquisition of Bai Brands for US $1.7 billion.
Bai is a line of “antioxidant infused” flavoured drinks. After the company was first founded in 2009 in New Jersey by a man called Ben Weiss, it has expanded to sell a carbonated version of Bai, bottled water, iced tea and other beverages.
Larry Young, Dr Pepper Snapple Group President and Chief Executive Officer, said the Bai team has been “hitting the bull’s eye” in meeting consumer demand in better-for-you beverages.
“Now that they’re part of the DPS family, we’re going to let them continue to fly and build on the entrepreneurial spirit that’s driven their success while providing them access to the full complement of Dr Pepper Snapple’s resources and capabilities,” he said.
The Dr Pepper Snapple Group does not currently operate within Australia but some of its beverages, like Dr Pepper soft drink, are parallel imported and often sold through speciality confectionery retailers.
Within the US, the Dr Pepper Snapple Group sells 7-Up, Sunkist and Schweppes branded beverages. Within Australia, these brands are controlled by Japan’s Asahi beverages. Bai is not currently sold in Australia.
- Heinekento purchase FEMSA Cerveza for US$5.5bn
- Dr PepperSnapple Group enters energy drink market with venom
- First sports drink with stevia released byDr Pepper Snapple
- Vegemiteis just the beginning for Bega
- Mars US acquires pet care company
The first of a series of Eagle Boys restaurants re-opening as Pizza Hut stores has began trading in ...
On 25 November 2016, the Australia New Zealand Ministerial Forum on Food Regulation (the Ministerial...
Traditionally grown to make tequila with in Mexico, MSF Sugar in North Queensland plans to start gro...
A new Maggie Beer branded ice cream is now available in Australian supermarkets.
WELLNESS, moderation and image are the three key factors impacting a reduction in alcohol consumptio...
CAFÉ’S, restaurants and takeaway food outlets breaching minimum wage and penalty-rate compliance rem...
THE Australian food and beverage sector will continue to be a focus of merger and acquisition activi...
COULD genetic mapping allow allergy sufferers to enjoy peanuts without risk of anaphylaxis?