Tuesday , July 5 2022

Coca-Cola in the field of mergers and acquisitions


Coca-Cola CEO James Quincey says the company's high-profile acquisitions in the last quarter have been an exception to the norm – but it remains a question of how these new brands are successfully integrated into their portfolio and how the company wants to take on the potential of its latest brands.

Coca-Cola has created a new Global Ventures division that focuses on scaling up acquisitions and brands while identifying and developing a range of fast-growing opportunities.

M & A

James Quincey says recent acquisitions and investments have been in line with their strategy to drive disciplined business growth. Some innovations start at home: others are undergoing acquisitions.

"We are using innovations such as coffee coke to expand our portfolio by addressing key consumer opportunities and also raising, shifting and scaling successful brands like Fuze Tea in different markets." Quincey said. "However, there are times when we need or want to look externally and use M & A to drive our portfolio of total beverages.

"Over the past few months, we've announced several acquisitions and investments, each of which is part of our broader consumer portfolios expansion strategy, but it does not read the number of transactions in a quarter, and extrapolate it as a growth rate.

"Of course, we use mergers and acquisitions for many purposes: filling the gap in our portfolio, yes, entering new categories or even acquiring skills or platforms that complement our existing strengths, and looking for opportunities to create value by making brands bigger and better than those that already exist. "

Brand development: Global Ventures

Quincey says the key to speed is to share knowledge between different markets and brands. Global Ventures will focus on global acquisition and brand scaling, as well as identifying and managing the upcoming opportunities.

"We've had acquisitions in some parts of the world, we've had advanced new brands in different parts of the world, and what we have not been so successful about is that it's all across regions, across groups if you like, and I think, that is what it represents in terms of global business.

"So rather than letting something in one group be successful and forever going to another group, this unit will be there to help push and control the agenda for greater speed.

"At the end of the day, how do we get faster? We are speeding up not only for all of these things, but because there are exciting, interesting, financially attractive opportunities that the system can capture." The relative economy and capital needed vary by category. systems in different parts of the world that have already been built and, of course, what we have learned with our partners over the years is how to move quickly to a place where everyone is attractive. "

Recent acquisitions

Coca-Cola has recently made a number of investments and has chosen the brands Quincey says "Having a strong border will eventually enable us to get quality leadership in the appropriate categories."

In North America, Coca-Cola has acquired a stake in Bodyarmor, a premium brand of sporting performance and hydration, and one of America's fastest growing brands of beverages.

In September Coca-Cola bought Australia Organic & Raw Trading Company,Which gives Coca-Cola its first combo brand, Mojo. In Australia, it also received a 45% minority share Made Group,Which is known for cold pressed juices and high protein content.

Coca-Cola also bought Tropico in France to give the company a "strong support" in a fruit-flavored drink.

Coffee coffee

And the biggest announcement was the acquisition of the UK's $ 5.1 billion café chain Costa,Which should be closed in the first half of 2019.

"What we get with Costa is more than just a brand." Quincey said. "It's a platform that gives us the ability to change the $ 500 billion global hot drink category.

"Despite the size of Costa, our approach will be similar to other innocent and honest businesses, the goal being to save Costa's unique abilities and add strength to Coca-Cola, as with all our mergers and acquisitions, the completion of the acquisition is just the first step The speeding up of results and precise implementation is crucial.

"I think there are plenty of exciting things to do when Costa becomes part of our global coffee platform and our ability to grow in coffee. It's obvious that ready for drinking is an opportunity that makes a lot of sense.

"I think the other pieces in which we can certainly grow our coffee shops are better beverage partners to many customers there in many different channels, whether through a fusion to the machines in their facilities or the use of vending machines that are a bit similar to our machines Freestyle on the coke side.

"There are plenty of ways to work with instant-on customers to offer The Coca-Cola coffee, be it a brand, a beverage and a machine, and of course there is also a home market, whether it be pods, capsules, sprinkled beans, there is also a significant opportunity to grow this space. "

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