GlaxoSmithKline News: Japanese Buy Lucozade
News Updates From GlaxoSmithKline
GlaxoSmithKline News Update: Japanese Buy Lucozade and Ribena. It has been announced that Japanese, Suntory, has brought the brands for 1.3 billion pounds.
The well-known and iconic drinks brands were sold in a deal of the same value that over two billion cartons of the blackcurrant drink Ribena would cost.
GlaxoSmithKline is the UK’s biggest pharmaceutical producer and they put the drinks producing arm of the business up for sale at the beginning of this year. The move came in response to Sir Andrew Witty, the chairman of the company’s initiative to focus more on the sales of brands connected with healthcare and the vaccines that GSK produce.
There was a lot of interest in the sale of the popular drinks brands Ribena and Lucozade and some private equity concerns including Lion Capital and Blackstone had initially shown an interest in acquiring the brands. But ultimately it was the Japanese food and beverage giant Suntory that won the day. Suntory only entered the drinks market in Europe four years ago when it paid over two billion pounds for the Orangina Schweppes brand.
As well as acquiring worldwide rights for the sale of the drinks, that combined generate sales of over five hundred million a year, Suntory also took over the GlaxoSmithKline manufacturing site, Coleford that is located in the Forest of Dean. Former employees at the Coleford site and those working on the Ribena and Lucozade brands in research and development and in commercial departments will be transferred to work for Suntory, a move that has to take place according to English employment law. Manufacture and distribution of the drinks, Lucozade and Ribena will continue under a licence arrangement in Nigeria.
Originally called, Glucozade, Lucozade was initially manufactured in 1927 by Newcastle chemist William Owen and has evolved to become, last year, the second-largest branded soft drink in the UK according to figures produced by Nielsen, the retail analyst.
Updates On GlaxoSmithKline
David Redfern who is the chief strategy officer for GlaxoSmithKline, who are currently facing claims of corruption in connection with its Chinese business, has said that the drinks Lucozade and Ribena are iconic brands and both have made a significant contribution to GlaxoSmithKline. He went on to say that the sale was being concluded at the right time as the focus of GlaxoSmithKline is to be shifted to expanding and developing the consumer healthcare side of the business and to the execution and the delivery of the late stage pipeline of vaccines and other pharmaceuticals.
4,381 total views, 7 views today