Fri, Apr. 17, 9:06 AM
- Coca-Cola (KO +0.5%) agrees to buy China Culiangwang Beverages Holdings for a deal price of $400.5M.
- The acquisition is the first time the company has nabbed a Chinese consumer products firm since 2010.
- China Culiangwang sells multi-grain drinks in the fast-growing plant-based protein drink category.
- Chinese regulators will review the transaction.
- KO -0.26% premarket.
Sat, Feb. 14, 10:13 AM
- Craft soda is starting to become a trend to watch closely, according to industry insiders.
- Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
- The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
- The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
- Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
- What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
- Craft beer watch: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ, OTC:BIBLF, OTCPK:BRBMF.
- Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
- Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA, FIZZ.
Dec. 22, 2014, 10:39 AM
- Wells Fargo turns the spotlight back on the potential unlocked by a combination of Coca-Cola (KO +1.1%) and WhiteWave Foods (WWAV +1.2%).
- The investment firm thinks a deal, full or partial acquisition, is more likely with Coca-Cola in a "partnership" frame of mind.
- WhiteWave brings new categories to the table, while Coca-Cola's enormous distribution network could take WWAV to the next level.
Aug. 16, 2014, 8:25 AM
- So why didn't Coca-Cola (NYSE:KO) just go all the way and acquire all of Monster Beverage (NASDAQ:MNST) instead of stopping at an asset swap and a 16.7% stake?
- More than anything, "it's about protecting the [Coke] brand and the image" from a company that urges consumers to "unleash the beast" with drinks such as Assault and Khaos, said a person close to Coke.
- Coke figures it deals with enough controversy from those who blame sugary sodas for obesity and diabetes; it wants to keep at arm's length from the more serious public relations battles facing the energy drinks industry, including an FDA probe over deaths possibly linked to Monster.
- On the financial side, the deal involves a reasonable $2.1B cash up front, while a full acquisition would have required at least $12B based on Thursday's closing stock price - roughly equivalent to the amount of cash Coke had on hand at the end of July.
- Despite the cautious approach, Coke could still own Monster some day; a standstill agreement limits KO to increasing its stake to 25% over four years, but MNST's board can waive it at any time.
Aug. 14, 2014, 4:51 PM
- Coca-Cola (NYSE:KO) is acquiring a 16.7% stake in Monster Beverage (NASDAQ:MNST) as part of a strategic alliance. Coke will make a $2.15B net cash payment to Monster at the time of the deal's closing, which is expected in late 2014 or early 2015.
- As part of the deal, Monster will transfer its non-energy businesses to Coke, and "enter into expanded distribution agreements." Monster will transfer its Hansens Natural Sodas, Peace Tea, Huberts Lemonade and Hansens Juice Products brands, among others.
- At the same time, Coke will "transfer ownership of its worldwide energy business, including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless," to Monster.
- Coke will have two directors on Monster's board. The partnership follows Coke's February deal with Keurig Green Mountain. Coke: "Our equity investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category."
- Monster: "Our agreement enables us to focus on our core energy business, while leveraging the strength of The Coca-Cola Companys powerful distribution and bottling system on a worldwide scale."
- MNST +25.6% AH.
Jun. 20, 2014, 7:42 AM| Comment!
Sep. 1, 2013, 2:21 AM
- Coca-Cola Femsa (KOF), the biggest soft-drinks bottler in Latin America, has agreed to acquire Brazil's Spaipa Industria Brasileira de Bebidas in a deal valued at $1.855B.
- The purchase of Spaipa, which generated net revenues of $905M in FY 2013, will increase Coca-Cola Femsa's volume in Brazil by 40%.
- News of the transaction comes days after Coca Cola Femsa completed the acquisition of Brazilian Coke bottler Companhia Fluminense de Refrigerantes for $448M.
- Coca-Cola Femsa is a joint venture between Coca-Cola (KO) and Mexican retail and bottling company Femsa. (PR)
Sep. 13, 2012, 5:31 AMThai billionaire Charoen Sirivadhanabhakdi offers S$9B ($7.3B) to acquire the 70% of Singapore's Fraser & Neave he doesn't control in what may be an attempt to prevent Heineken (HINKY.PK) from acquiring F&N's 40% stake in Asia Pacific Breweries for $4.4B. Coca-Cola's (KO) may well be watching with interest, as it's reportedly interested in F&N's beverages operations. | Comment!
Aug. 3, 2012, 7:03 AM
Aug. 2, 2012, 10:43 AMCoca-Cola's (KO -0.9%) potential bid to acquire the beverage business of Fraser & Neave is more than a vulture picking at scraps, with the company set to become a dominant player in Malaysia and Singapore if a deal comes off. An acquisition would also bolster Coca-Cola's dairy portfolio, as it tries to keep up with PepsiCo. | Comment!
Aug. 2, 2012, 3:57 AMCoca-Cola (KO) is reportedly considering a bid for the beverage ops of Singapore’s Fraser & Neave, which include F&N’s dairy and soft-drinks divisions and could be worth up to $3B. The speculation comes as a battle between Heineken and Thai billionaire Charoen Sirivadhanabhakdi for Asia Pacific Breweries, in which F&N owns 40%, nears a climax, with F&N set to decide on a $4.1B bid from Heineken for its holding. | 3 Comments
May. 1, 2012, 10:00 AMMonster Beverage (MNST +2.1%) trades higher as all the dust settles from its roller coaster ride to above $83 on a report Coca-Cola was talking about buying the company. Though Coca-Cola (KO +0.1%) denies being in discussions, sources say the company is wordsmithing a bit after it backed off a proposed deal after shares of MNST ran up 28% lickety-split. | Comment!
Apr. 30, 2012, 1:12 PM
Apr. 30, 2012, 11:53 AMMonster Beverage (MNST +17%) soars after the WSJ reports Coca-Cola (KO -0.3%) is interested in buying the company, and could sell bottling assets to pay for the deal. Monster shares have been halted after hitting circuit breakers. Update (11:58 ET): Monster has resumed trading, and is now up 26.2%. | 1 Comment
Mar. 12, 2012, 4:57 PMBloomberg speculates Monster Beverage (MNST) could prove a tempting acquisition target for the likes of Coca-Cola (KO), which looks to capture more of the U.S. energy drink business and could use its strong distribution network to broaden MNST's prospects overseas. Despite MNST's market cap surging past $10B, earnings should grow another 70% in 2012. | Comment!
Dec. 14, 2011, 8:26 AMCoca-Cola (KO -0.35%) looks to exploit the large non-alcoholic drinks market in the Middle East with the $980M purchase of about half of the equity in the beverage business of Saudi Arabia's Aujan Industries. Aujan Chairman Adel Aujan hopes to double annual revenue in five years from the current 3B riyals ($800M). (PR) | Comment!
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