There are two items of business strategy news this year that I have been unable to reconcile in my own mind.
beverage industry blog with Richard Hall, Chairman of Zenith International, specialist consultants to the food and drink industries worldwide
Friday, 27 July 2007
SAN MIGUEL : BEER VS POWER
Friday, 6 July 2007
UKRAINE : COUNTRY TO WATCH
The smartest investors have been looking beyond the large population emerging BRIC economies of Brazil, Russia, India and China towards the lower profile second tier. Ukraine has been high on Zenith's list and is swiftly moving up other people's rankings too.
The fundamental reasons are :
- Geography - between central Europe and Russia.
- Population - 46 million, bigger than Spain and Poland.
- Growth - over 7% a year increase in economic output since 2000.
- Democracy, independence and opening outlook.
The dairy sector has seen two recent acquisitions:
- September 2006 - Danone buys Rodich for $10 million.
- April 2007 - Bel takes over Shostka cheese producer for estimated $60 million.
In beverages, activity has accelerated this year:
- April 2007 - Russia's Wimm-Bill-Dann announces interest in Ukrainian juice market.
- June 2007 - PepsiCo and PepsiAmericas acquire 80% of Sandora juice business for $542 million.
- June 2007 - Orangina Group purchases Rosìnka mineral water producer with sales of 30 million euros.
Buy now, while stocks last ?
Wednesday, 4 July 2007
CADBURY SCHWEPPES : UNFINISHED BUSINESS
- Cadbury - Australia
- Americas Beverages - US, Canada, Mexico
- Orangina Group - Benelux, France, Iberia, Italy
- Coca-Cola - Rest of world
So success for the new Americas Beverages will mean taking some beverages beyond the Americas. And success for the Orangina Group will mean taking more beverages beyond Europe. But Coca-Cola has the widest interests and Australia cannot remain isolated forever. There are also relationship complications for other brands such as Oasis and Orangina. So the outlook for these lemonades will become cloudier before it becomes clearer.