Daily Management Review

Moving Towards Healthy Options PepsiCo Inc. Bids To Acquire Vita Coco


05/31/2017


The deal between PepsiCo and Vita Coco still rests on uncertain ground.



PepsiCo Inc. is conducting acquisition talks with All Market Inc. The former manufactured soft drink and the latter owns Vita Coco, a “coconut water brand”, with its “celebrity investors” like “Madonna and Matthew McConaughey”.
 
Acquiring All Market Inc. will enable PepsiCo to offer a diverse menu as it continues to grapple with “stagnant sales”, while there is a shifting trend of the consumers who prefer “healthier options” than “sugary drinks and snacks”. However, PepsiCo’s bid for All Market Inc. is “$1 billion” lower than the expectations of the latter’s owners, whereby making it an extremely uncertain grounds to predict the future of this negotiation.
 
Vita Coco has founded in the year of 2004 and is now operating in thirty countries as the “global leader in coconut water”. In fact, Euromonitor International, a tracker of data also informs that Vita Coco’s “26 percent share of a market” is “worth $2.5 billion”. Reuters also talked about Vita Coco’s investors, whereby it enumerated:
“Verlinvest, the family office of one of the Belgian families related to brewer Anheuser Busch InBev NV (ABI.BR), took a stake in All Market in 2007. Singer Madonna and actors McConaughey and Demi Moore are among other investors in the company”.
 
Moreover, in the year of 2014, it also sold twenty five percent of its stake to “T.C. Pharma”. Through this deal with the “owner of Red Bull China”, Vita Coco attained the place of “world's most populous country” drink, besides the total value of All Market Inc, following the deal were valued at “$665 million”.
 
Furthermore, Reuters added:
“As part of its healthy initiative program, Pepsi announced late last year that it aims to have sales of its ‘everyday nutrition’ products, including grains, dairy and hydration, outpace the rest of its products by 2025”.
 
 
 
References:
http://www.reuters.com







Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat