Britvic
Britvic Reports 9.4% Revenue Growth in Ireland Despite Challenges
Britvic showed a notable 9.4% increase in Irish revenues for the year ending September, attributing the growth to both higher volume sales and strategic price adjustments. The introduction of Ballygowan Hint of Fruit products in 2022 played a significant role in an additional 88.3% boost to revenue. Despite facing challenges in the Irish market and implementing substantial price increases, the cost of living crisis affected results. While key brands such as Pepsi, 7Up, MiWadi, and Ballygowan showed revenue growth, others like Teisseire and Fruit Shoot saw declines as consumers turned to more affordable private label options. Overall group revenues for Britvic rose by 6.6% to £1.75bn, reflecting a successful strategy amid market challenges.
Carlsberg
Carlsberg's New CEO Eyes Asian Markets and Price Hikes to Offset Loss in Russia
Jacob Aarup-Andersen, the newly appointed CEO of Carlsberg A/S, reveals plans to increase investments in fast-growing Asian markets such as China, Vietnam, and India. The move aims to drive growth and compensate for the loss of Carlsberg's Russian business Baltika, seized by the Russian government. The company is set to focus on digital and data-driven activities amidst declining beer volumes globally. While emphasizing financial discipline, Aarup-Andersen expects to normalize investments in areas like marketing and branding. He anticipates beer prices to continue rising to counter escalating input costs, albeit at a slower pace than witnessed in the past two years. In February the company will announce a refresh of its “Sail’27” strategy plan drawn up by the previous CEO.
Consumers
Australia's Caffeine Scene: Suntory BOSS Coffee Targets Gen Z with Iced Coffee Innovation
Suntory BOSS Coffee's latest research highlights Gen Z's embrace of ready-to-drink (RTD) iced coffees in Australia. The study shows 88% of young Aussies like iced coffee, and 61% of those who haven’t tried it are motivated to try. The report emphasizes Gen Z's cost-conscious coffee consumption, with 42% limiting daily intake to one coffee. Suntory BOSS Coffee is the market leader of RTD coffee in Australia and introduced the Rainbow Mountain Blend to cater to Gen Z's changing coffee preferences and help them ‘explore the culture of Japanese canned coffee’.
Lotte
Spirit of Gallo Partners with LOTTE Chilsung to Introduce Soju to U.S. Market
Spirit of Gallo, the third-largest spirits supplier in the U.S. by volume, will diversify its portfolio by adding Soju, a popular Korean spirit, through a partnership with LOTTE Chilsung Beverage. The move capitalizes on the growing demand for Soju in the U.S., driven by multicultural consumers and Gen Z 21+ seeking diverse alcoholic beverage options. Soju is mild and versatile, commonly made from tapioca, sweet potato, rice, barley or wheat, and has a lower alcohol content than many Western spirits. LOTTE Chilsung, the world's second-largest Soju manufacturer, offers a range of Soju brands, including flavored (Soonhari), unflavored (Chum Churum), and zero sugar (Saero). Gallo aims to expand the distribution of LOTTE's Soju brands beyond Asian specialty stores, tapping into broader consumer channels.
RJ Corp
Varun Beverages Expands Into South Africa With $159 Million Acquisition
Varun Beverages, a major Pepsi India bottler, announces the acquisition of South Africa-based The Beverage Company for $158.7 million. This move allows Varun Beverages to enter Africa's largest market. The Beverage Company, engaged in bottling and distributing PepsiCo-branded non-alcoholic beverages, operates in South Africa and neighboring countries, with five manufacturing facilities. Varun Beverages, known for its extensive operations in India, sees the acquisition as a strategic expansion into the African market. The deal is set to be finalized by July 31, 2024, contingent on regulatory approvals.
Suntory
Suntory to Divest Indonesian Soft Drink Business Stake to Garudafood
Suntory Beverage & Food said it will exit the nonalcoholic beverage business in Indonesia by selling its 75% stake in Suntory Garuda Beverage to JV partner Garudafood. The move, part of a continuous portfolio review, aligns with Suntory's strategic focus on the "health enrichment category" in Indonesia. The joint venture, established in 2011, engages in the production and sale of tea and jelly drinks, generating approximately $70 million in revenue in 2022. The divestment is slated to be completed in the first half of 2024, and Suntory said the impact on its consolidated earnings will be minor.
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