GSK and UPCH to Launch Lucozade Across China
With this new partnership, consumer access to Lucozade will increase significantly through UPCH’s strong distribution network to diverse sales channels across China.
29 Sep 2009 --- GlaxoSmithKline (GSK) announced an exclusive agreement with President (Shanghai) Trading Co. Ltd, a wholly-owned trading arm of Uni-President China Holdings Ltd (UPCH), one of the leading food and beverage companies in China, to launch GSK’s highly successful Lucozade drinks franchise across China. GSK and UPCH are also in the early stages of discussions on a range of additional opportunities.
Lucozade is one of the world’s leading sports and energy brands with global sales of approximately £400 million. The brand holds market-leading shares in the UK, Ireland, West Africa and Hong Kong. The Chinese cold beverage market is currently valued at 178.5bn RMB (£16bn) and the market for energy drinks is one of the fastest growing areas of functional drinks with a CAGR of c.10 per cent (2003 - 2008). Distribution of Lucozade under this agreement will begin in early 2010.
Commenting on the new alliance, John Clarke, President, Consumer Healthcare GSK said: “GSK is focused on building a diverse global healthcare business, and this agreement marks the first in a series of steps we are taking to expand our successful nutritional healthcare business into new and emerging markets. Lucozade is a dynamic and powerful brand, and together with UPCH, we will now have significant new scale and local expertise to increase availability of the brand to more consumers in China, one of the world’s largest and fastest growing economies.”
With this new partnership, consumer access to Lucozade will increase significantly through UPCH’s strong distribution network to diverse sales channels across China. UPCH holds a leading position in the highly competitive juice drink and ready-to-drink tea markets in China, with nationwide reach to more than one million outlets.
GSK will continue to manufacture Lucozade at its existing manufacturing site in Guang Dong, China and will invest behind further capacity with partners.
