Lucozade and Ribena sold to Japanese firm for £1.35bn

Lucozade: energy drink range and sister Ribena brand sold to Suntory Beverage & Food
Lucozade: energy drink range and sister Ribena brand sold to Suntory Beverage & Food

GlaxoSmithKline (GSK) has sold its Lucozade and Ribena business for £1.35bn to Japanese company Suntory Beverage & Food (SBF).

News broke last week of the two companies being in advanced talks about the sale, and the deal is expected to complete by the end of the year, subject to regulatory procedures.

SBF is a global soft drinks company based in Japan with global consolidated sales of more than £12bn in 2012. In 2009, the company bought the Orangina Schweppes drinks brand for more than $3bn (£1.92bn).

GSK had announced it would conduct a strategic review of the drinks brands following a 1% revenue decline in 2012, which led to the decision to sell off the brands by the end of 2013.

In August, GSK said it was splitting the company into two separate business operations to prepare for the sale, with Peter Harding leading the Lucozade and Ribena business, and Carol Smith appointed as UK and Ireland marketing director for the division.

David Redfern, chief strategy officer, GSK, said: "Lucozade and Ribena are iconic brands that have made a huge contribution to GSK over the years, but now is the right time to sell them as we increase the focus of our Consumer Healthcare business and execute the delivery of our late-stage pipeline of pharmaceuticals and vaccines.

"We believe the future of Lucozade and Ribena is in good hands given SBF’s established beverages business, ambitious growth plans and also their recognition of the strong performance and capability of the GSK employees working on these products."

Carlton Lawson will lead the GSK Consumer Healthcare business, which spans oral health, wellness, nutrition and skin health.   

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

Virgin, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug
Thetrainline.com backs 'rubbish' mobile app with TV ad
Powerade launches global World Cup campaign
Subway considers taking fast food to fast lane with F1 sponsorship
Burberry's flagship Shanghai store facade responds to weather changes
Ikea splurges 'grey' Belgium with colour
Grim outlook for Tesco boss Philip Clarke ahead of expected profits fall
Thomson to create first crowd-sourced wedding decided by Facebook fans
Currency wars meets origami in Alpari FX trading ad campaign
Amazon rumoured to launch 3D smartphone in September
Facebook to allow European users to store and transfer money on site, claims report
Unilever pilots multi-brand advertising with YouTube beauty channel
Lego, Coca-Cola, Net-a-Porter, Bitcoin and AOL: the digitally creative brands