Danish brewer Carlsberg has announced a significant acquisition of Britvic for £3.3bn.
- The acquisition is expected to save £100m through enhanced efficiencies.
- Carlsberg will also acquire Marston’s stake for £206m, strengthening its portfolio.
- Questions arise regarding Britvic’s existing contracts with logistics firms.
- Carlsberg aims to combine Britvic and its services for broader market reach.
Danish brewer Carlsberg has made headlines with its ambitious plan to acquire the British soft drinks maker Britvic in a deal valued at £3.3bn. This strategic move aims to achieve cost savings of approximately £100m over five years, primarily through supply chain, procurement, and administrative efficiencies. Carlsberg’s announcement on 8 July highlights its commitment to enhancing its market position through this acquisition.
Alongside the Britvic deal, Carlsberg has revealed its intention to purchase Marston’s 40% stake in the Carlsberg Marston’s Brewing Company (CMBC) for £206m. Marston’s will continue to play a pivotal role in the business through its long-term drinks supply and distribution agreement. This acquisition underscores Carlsberg’s strategy to fortify its portfolio and consolidate its market presence.
The acquisition of Britvic also brings Britvic’s existing logistics contracts into focus. Britvic currently relies on Eddie Stobart for UK transport operations and Wincanton for managing its Lutterworth NDC warehouse. Carlsberg, with its existing logistics provider GXO managing over 400 million litres of beer annually, is evaluating the optimal way to integrate Britvic’s distribution capabilities.
Carlsberg currently operates three breweries and boasts the strongest distribution network among UK brewers, with 15 depots nationwide, serving around 7,000 independent customers and moving 16% of UK draught beer volumes. This extensive infrastructure, enhanced by the Britvic acquisition, positions Carlsberg to better penetrate the market and offer more efficient services.
Jacob Aarup-Andersen, Carlsberg Group’s chief executive, emphasised the potential of combining Britvic’s high-quality soft drinks with Carlsberg’s strong beer portfolio and expansive distribution channels. He stated that the transaction would be lucrative for shareholders, enhancing growth ambitions and expanding the partnership with PepsiCo.
Britvic holds an exclusive licence with PepsiCo to manufacture and sell popular beverages such as Pepsi Max, 7UP, Rockstar Energy, and Lipton Ice Tea in Great Britain and Ireland. PepsiCo Europe’s chief executive, Silviu Popovici, expressed eagerness to leverage this acquisition to boost sales and expand market capabilities.
This acquisition marks a significant step in Carlsberg’s strategy to enhance its beverage portfolio and logistical reach in the UK and Europe.
