Carlsberg to Acquire Soft Drink Maker

Danish beer brand Carlsberg recently agreed to purchase soft drink maker Britvic for £3.3 billion ($4.23 billion USD), to expand into the non-alcoholic beverage market, reports The Wall Street Journal.

Britvic leads 39 brands that are sold in more than 100 countries, according to the report. Additionally, the brand has a deal with PepsiCo in the U.K. to handle the production, distribution, and sales of its carbonated drinks brands including Pepsi, 7Up, and Mountain Dew.

The Britvic deal would boost Carlsberg’s soft drink volumes at a time when the prospect of long-term beer sales growth across the industry remains uncertain, according to the report. Currently, Carlsberg’s soft drinks portfolio represents 16 percent of group volumes and 27 percent of Western Europe volumes. Its “Beyond Beer” category, with brands including Somersby and Garage, accounts for only 2 percent of total volumes.

The beer brand said today that the proposed acquisition supports its growth strategy while building on its bottling business. It added that it intends to accelerate commercial and supply chain investments in Britvic. Full Story (Subscription Required)