Suntory to acquire Frucor from Danone for €600 million

25 October 2008

Japan's fourth largest beverage company Suntory Ltd. will acquire Paris-based Groupe Danone SA's Frucor unit for over €600 million ($771 million). As part of the acquisition, New Zealand and Australian energy-drink brands Mizone and V would become part of its portfolio.

With estimated sales of € 210 million, Frucor is the market leader in energy drinks throughout Australasia, and is the second-largest non-alcoholic drinks company in New Zealand. 

Founded in 1899, Suntory is a leading food and beverage company with an extensive product line up consisting of whisky, beer, wine, healthy foods and soft drink. It has a turnover of $15billion, and has been significantly increasing its global presence through strategic alliance and acquisition in beverage industry in US, Europe and Asia Pacific. Other products in the company's portfolio include Suntory Oolong tea and BOSS canned coffee. 

Danone, which also bottles Evian mineral water from the French Alps, plans to use the money from the sale of Frucor to cut debt. A statement on the company's website said that the transaction stems from the recent refocus on natural mineral water and spring water based beverages and will allow Danone to focus on its core business growth opportunities. 

''Frucor has played an instrumental role in Danone's growth and innovation strategy over the past six years. We are convinced that this new step will allow Frucor to ensure its long term development within the beverages market'', said Emmanuel Faber, co-chief executive officer of Danone.

Danone had announced that it was evaluation options for the business which it had acquired in 2002 for an amount of around $150 million. Danone sold its cookie unit for around €5.3 billion in 2007, and thereafter acquired baby-food maker Royal Numico NV to gain a presence in the more profitable, faster-growing business with a health focus.