Britvic in US$66 Million Deal to Buy Brazilian Bela Ischia

afe6b1bf-331e-4d6c-8fd7-8c8b476768ccarticleimage.jpg

05 Jan 2017 --- UK soft-drink maker Britvic is once again expanding in Brazil with an announcement that it is set to acquire juice business Bela Ischia in a deal worth R$218m (US$ 66 million) - the second acquisition for Britvic in Brazil in less than two years. 

Bela Ischia produces juices, liquid concentrates and powder concentrates and operates in Rio de Janeiro and Minas Gerais, in the south east of the country. 

This latest move in Brazil follows Britvic acquiring Empresa Brasileira de Bebidas e Alimentos SA ("ebba") and the leading liquid concentrate brands Maguary and Dafruta in Brazil, the world's largest concentrates market, in September 2015. 

Britvic says, Ebba has been integrated successfully into the group, and has delivered excellent results in its first year “against challenging macro conditions.”

The juice category in Brazil is made up of ready to drink (RTD) juice, liquid concentrates, and powder concentrates; the performance of all three is closely related. Bela Ischia, like ebba, competes in liquid concentrates and RTD juice. The consolidation of liquid concentrates and RTD juice will allow Britvic to strengthen its competitive offer, in particular against the larger powders brands.

Britvic describes Bela Ischia as a “strong and well recognized consumer brand,” and the acquisition both strengthens Britvic's brand portfolio in Brazil and creates a broader regional footprint by complementing the existing ebba strengths in Sao Paulo and the north east.

Britvic expects the combined businesses to realize substantial cost savings, principally from efficiencies in procurement, production, logistics and administration. In addition, revenue benefits are expected to be generated from marketing the wider brand portfolio across a broader geographical presence.

“The proposed acquisition of Bela Ischia represents an exciting opportunity to build on our very strong first year in Brazil with further expansion of our presence in a large and growing soft drinks market. Bela Ischia operates in a category where Britvic has proven capability of generating growth, launching new products and establishing brand leadership and is an excellent complementary fit with our existing business,” says Britvic CEO, Simon Litherland. 

“Our due diligence to date has identified significant cost synergies and potential further revenue benefits arising from a broader brand portfolio and geographical presence. As a result, we are confident that this complementary acquisition should create a fantastic platform to consolidate our strategic position in Brazil and generate additional shareholder value over the coming years.”

The transaction terms have been agreed in principle and the Britvic management has identified certain specific closing conditions, including final due diligence and a completion audit. Subject to satisfactory conclusion to these conditions, that completion is anticipated by the end of March 2017.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Greencore sells US operations to Hearthside in US$1bn plus deal

15 Oct 2018 --- Greencore Group plc has agreed to the sale of its entire US business, Greencore US, to an affiliate of Hearthside Food Solutions LLC for US$1,075 million on a cash and debt-free basis. Greencore says that following the deal, it expects to have a leading position in its core UK market, greater financial and strategic flexibility and potential for dynamic capital management. Hearthside believes the transaction marks a significant step in the further growth and development of its network.

Food Ingredients News

Chr. Hansen acquires dairy ingredient supplier Hundsbichler, raises organic growth targets

15 Oct 2018 --- Chr. Hansen is further expanding its enzyme production and presence into the traditional segments of specialty cheeses, with the newly announced acquisition of the assets of Austrian-based ingredient supplier Österreichische Laberzeugung Hundsbichler GmbH. Hundsbichler products are widely recognized for high quality and the purchase will enable Chr. Hansen to offer cheesemakers a second-to-none product portfolio in the animal rennet space, according to the company. Separately, the company announced that it had achieved all the overall financial targets set at the beginning of the year and raised its ambitions 9-11 percent organic growth for next year.

Food Ingredients News

Fattening up in weight management: Glanbia acquires SlimFast for US$350m

12 Oct 2018 --- Global nutrition group, Glanbia, is set to acquire SlimFast for US$350 million, from KSF Holdings LLP and HNS Intermediate Corporation who collectively own SlimFast and other brands. The company plans to operate SlimFast within its Performance Nutrition segment of the business which plays into global consumer trends focused on convenient formats and snacking, according to Glanbia. SlimFast is a well-established brand with high levels of awareness in the US, its largest market.

Food Ingredients News

Weekly Roundup: Eggs for sustainable protein, Symrise receives recognition for environmental commitment

12 Oct 2018 --- Today (October 12) marks World Egg Day 2018 and the American Egg Board is celebrating with a global campaign that focuses on eggs as a sustainable source of high-quality protein. Meanwhile, Symrise has achieved second place in the German CSR Awards 2018, for its commitment to sustainability. Flagship Food Group is adding up to 90 jobs as it expands its frozen food manufacturing in Albuquerque, New Mexico and ADM has announced the completion of their flour mill modernization in Enid, Oklahoma. The Fuji Oil Group has joined the Dutch Food Valley community to accelerate R&D and build global collaboration networks and finally, Campden BRI is calling for companies to join a research project to understand better what causes “checking” in biscuits and crackers.

Food Ingredients News

Nestlé Malaysia offloads chilled dairy business to Lactalis

11 Oct 2018 --- Nestlé (Malaysia) Berhad is investing more than RM100 million (US$24 million) to expand its MILO factory in Chembong, in line with its strategy of driving strong, profitable and sustainable growth and investing in Malaysia as a key manufacturing hub for the Nestlé Group. Subsequently, French dairy group, Lactalis will acquire and take over operations of the PJ factory as well as Nestlé’s market-leading Chilled Dairy business.

More Articles