Britvic plc, a British producer of soft drinks, ready-to-drink juices, and a global leader in branded flavored concentrates, announced today the successful completion of its acquisition of the Extra Power energy drink brand, following the receipt of regulatory clearance.
In addition to this milestone, Britvic has also entered into an agreement to acquire three additional Brazilian soft drink brands. These include the energy brand Flying Horse, the juice brand Juxx, and the acai smoothie brand Amazoo. The seller is GlobalBev, a Brazilian company specializing in innovative beverages and food products.
This strategic acquisition in Brazil marks an important step for Britvic, as it expands its brand portfolio and strengthens its regional presence. Notably, the energy drink category is the fastest-growing segment in the market, with a 17% increase in volume in 2022 compared to the previous year. Furthermore, it is projected to continue its growth trend with a forecasted 20% year-on-year increase in 2023.
Within this category, Extra Power enjoys widespread distribution and commands an impressive 42% market share in its core regions near Brasilia. Flying Horse holds the distinction of being the first international energy brand to enter the Brazilian market approximately two decades ago. Juxx is recognized as a premium juice brand with added health benefits, and Amazoo is known for its acai-based premium smoothies.
In the year ending December 2022, the acquired portfolio generated 118 million BRL (USD 22.85m) in net sales, reflecting a remarkable 26% growth compared to the previous year.
This acquisition underscores Britvic's commitment to expanding its operations in Brazil, aligning with its strategic goals to accelerate and broaden its presence in this key market. It's worth noting that the acquisition also includes a modern and efficient warehouse facility located in Brasilia, which is expected to enhance Britvic's supply chain efficiency across its broader product portfolio and route to market into Brazil's Centre-West region.
Simon Litherland, Chief Executive Officer of Britvic, expressed his enthusiasm about the addition of these brands to Britvic's Brazilian portfolio. He stated, "The addition of these brands to our Brazilian portfolio will accelerate our growth trajectory in one of our key markets and create overall value. In line with our strategy to expand our business and accelerate our growth in Brazil, we now have a meaningful presence in the Centre-West region, providing the opportunity to scale our existing brands into territories where we've historically under-indexed, while also bringing new brands into our existing market regions."
Britvic initially entered the Brazilian market in 2015 with the acquisition of Ebba, followed by the purchase of Bela Ischia in 2017. Since then, Britvic has successfully transformed well-loved fruit brands such as Maguary, Dafruta, and Bela Ischia into nationally recognized names known for their innovation.
Maguary, with a heritage dating back to 1953, is similar to European flavor concentrates brands and is a staple in Brazilian households. This heritage and family awareness enabled the launch of Fruit Shoot in Brazil as "Maguary Fruit Shoot," following a similar approach to Britvic's European strategy where Robinsons and Teisseire are the flagship brands. Recent category expansions have included the introduction of Puro Coco and Natural Tea, both in ready-to-drink formats within the coconut and iced tea categories. Furthermore, the Brazilian team has expanded Maguary's presence by introducing a plant-based chocolate drink.
Dafruta Tropical, launched in the flavor concentrates category, leverages the technical expertise of the Robinsons formulation. This new range features real fruit, a variety of flavors, and comes pre-sweetened, distinguishing it from traditional concentrates in Brazil that require consumers to add sugar. In recent times, the portfolio has expanded with the launch of Britvic Mixers and the premium Mathieu Teisseire range of cocktail concentrates.
The growth potential for fruit drinks in Brazil aligns well with Britvic's fruit growing and processing company, Be Ingredient, which supplies natural ingredients for Britvic and the international market.
This announcement follows an earlier statement made in July when Britvic announced its intention to acquire Jimmy’s Iced Coffee, the fastest-growing ready-to-drink iced coffee brand in the UK, with a presence in over 10,000 distribution points. (inside.beer, 27.7.2023)
In addition, in August, Britvic announced an investment of GBP 22.5 million (USD 27.3m) in its sixth bottling line at its East London factory in Beckton, increasing production capacity at the site by nearly 30% and creating 18 new jobs in the community. Furthermore, in September, Britvic disclosed plans to invest EUR 6 million (USD 6,3m) in its Ballygowan facility in Newcastle West, Co. Limerick, Ireland, to expand the site's production capacity by over 20% to meet the growing consumer demand for Ballygowan mineral water, resulting in the creation of 28 new jobs.
In 2020, Britvic reached agreement with PepsiCo for a new and exclusive 20-year franchise bottling agreement for the production, distribution, marketing and sales of its carbonated soft drink brands - including Pepsi, 7UP, Mountain Dew and Rockstar - in Great Britain.