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Tuesday, December 12, 2017
 Rabobank Reports a “Megatrend” of Soft Drink Players Moving Into Dairy In 2012  

 “The world’s thirst for protein drinks, prebiotics and other functional drinks has led to a burst in new product creations.” This is the view from the authors of ‘Best of Times, Worst of Times: Global Beverage Outlook 2012’, the newest report published by Rabobank.

“The convergence between soft drinks and dairy beverages continues to attract global beverage companies such as Coca-Cola, PepsiCo, Suntory and Danone.”

The analysts noted that, in 2010/11, PepsiCo acquired Russia’s leading juice company Lebedyansky and its top dairy player Wimm-Bill-Dann, and had also entered a joint venture (JV) with Saudi Arabia’s Almarai Dairy.

In addition, PepsiCo acquired Beyti (an Egyptian juice and dairy concern) and signed another JV with German dairy player Müller to exploit the US market.

“Coca-Cola’s announced goal of doubling its revenues by 2020 provides further impetus to also explore newer segments such as hot drinks, dairy and soy-based beverages,” Rabobank’s analysts wrote.

“Given the size and scope of these new initiatives, we are likely to see the increasing convergence of soft drinks and dairy beverages around the world in 2012.”

PepsiCo Sees Potential
Rabobank’s predictions tally with recent comments made by PepsiCo’s general manager for global nutrition, Sam Lteif, speaking at the International Dairy Foods Association (IDFA) annual forum event last month.

Lteif told delegates that dairy had “tremendous potential” within PepsiCo’s global growth strategy, and suited the nutritional needs of all consumer groups.

In their outlook report, Rabobank’s analysts picked out ‘segment convergence’ as a key “megatrend” accelerating across all segments, beyond major soft drinks players alone moving into dairy.

Beer distributors were also acquiring wine and spirits distributors, while breweries were buying soft drinks brands, they noted, where convergence increased scale and created supply chain efficiencies.

Nonetheless, the convergence trend was visible to differing extents throughout the world, the authors wrote.

“Convergence between beer and spirits distribution in the US has just begun, as US beer distributors are starting to look beyond a stagnant beer market for new growth opportunities,” they said.
 

In China, convergence between soft drinks and dairy segments is already well advanced. For example, it has already helped Super Milky Pulpy Juice to become Coke’s latest $1bn brand.”

Source: Beverage Dairy

http://www.beveragedaily.com/Markets/Convergence-megatrend-will-marry-soft-drinks-to-dairy-in-2012-Rabobank/?utm_source=newsletter_daily&utm_medium=email&utm_campaign=GIN_FNUd&c=dDfK5Z8gzn4OSkpujwL09Q%253D%253D
 


Posted on Thursday, February 23, 2012 (Archive on Thursday, March 01, 2012)
Posted by bsutton@adpi.org  Contributed by bsutton@adpi.org
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