PEP - $4.3B In Soft Drinks: Carlsberg Acquires Britvic In Bold Move Amid Cannabis Market Growth | Benzinga
Carlsberg's (CARL-B.CO) recent $4.3 billion acquisition of Britvic, known for Robinsons squash and J20, highlights a strategic pivot for the Danish brewer. The deal will create a new entity, Carlsberg Britvic, to enhance its footprint in the UK and Western Europe. Following a previously rejected lower offer, Britvic investors will receive £13.15 per share.
Navigating A Changing Market
The move comes as Carlsberg navigates a market where younger consumers are less inclined towards alcohol.
Diversification into non-alcoholic beverages could be interpreted as a proactive measure to capture growth in multiple drink sectors. Britvic's strong financial performance, with a 6.3% revenue increase to £502.9 million for the quarter ending June 30, underscores its market strength.
Strengthening Partnerships And Portfolio
Carlsberg’s acquisition also includes Britvic's exclusive license with PepsiCo (NASDAQ: PEP) to produce and sell brands like Pepsi, 7Up and Lipton iced tea in the UK.
This partnership with PepsiCo is set to expand, streamlining bottling operations across Europe. Concurrently, Carlsberg is buying Marston’s (LSE: MARS) 40% stake in their UK brewing joint venture for ...