Carlsberg will buy Britvic. What can we expect?

In the UK, two multinational drinks businesses have collided. Is this going to be the perfect cocktail or a disappointing pre-mixed can that has been left in the sun too long?

Carlsberg has just bought softdrinks heavyweight Britvic. Let’s dig down into what this actually means for one of the biggest breweries in the world. 

Here’s the story so far:

The Deal

Carlsberg has agreed to acquire Britvic for approximately £3.3 billion. 

What’s in the Mix?

Britvic isn’t just about Robinsons squash; they’ve got a whole host of soft drink brands, including Tango, Fruit Shoot, J2O, and Aqua Libra. Plus, they’re the main partner for PepsiCo in the UK. They are one of the biggest players when it comes to the world of soft drinks.

The Marston’s effect

But wait, there’s more! Carlsberg isn’t stopping at Britvic. They’ve also tied-up Marston’s 40% stake in the Carlsberg Marston’s joint-venture. This joint-venture was responsible for brewing ales such as Pedigree and Wainwright’s. Marston’s the UK pub group, is now happily focusing on its pub estate, leaving the brewing business to the experts.

The Bigger Picture

Carlsberg is looking at the way the winds are blowing and this feels like the next sensible piece of the puzzle.

Growth Ambitions

The move plays in to Carlsberg’s growth ambitions. They’re creating a new entity called Carlsberg Britvic. This new company will be a multi-beverage supplier of scale, with an efficient supply chain, a comprehensive brand portfolio, and a stronger bond with PepsiCo across Western Europe and Asia 2.

PepsiCo’s Nod

They’ve given Carlsberg a thumbs-up by waiving the change-of-control clause in their bottling arrangements with Britvic. That means the 20-year franchise bottling deal remains intact.

The Final Pour

The deal is due to be finalised during the first quarter of 2025 and feels like a cocktail made in Heaven (not the dingy nightclub for anyone aged over 35). This strategic move is helping to keep both Carlsberg and Britvic moving in the right direction with the changes in attitudes to drinking. Let’s see what the future holds but this, on paper, looks like everyone involved will soon be raising a glass.

 

SPEAK TO OUR EXPERTS