The Board of Directors of Britvic plc, a beverage company, reported that it has completed the purchase of GlobalBev’s Extra Power energy drink brand after obtaining regulatory approval. In addition, as part of the agreement, Britvic has also decided to acquire three more Brazilian soft drink brands belonging to GlobalBev: Flying Horse (energy drink), Juxx (juice) and Amazoo (acai smoothie).
Britvic’s acquisition in Brazil is aimed at expanding its brand portfolio and regional presence. It should be noted that this action is due to the fact that the energy drinks category is the fastest growing in the market. Specifically, this segment recorded a 17% increase in volume in 2022 and is expected to grow by another 20% this year. Among these beverages, Extra Power is the most popular in the central regions near Brasilia, with a 42% market share. Flying Horse was the first international energy drink brand to enter Brazil two decades ago. On the other hand, Juxx is a premium brand of juices with health benefits and Amazoo is a premium acai-based smoothie. Through December 2022, the acquired brands generated R$118 million in net sales, representing a 26% growth over the previous year.
This operation represents a major step for Britvic’s operations in Brazil, as it is aligned with its strategy to grow and expand throughout the country. In addition to acquiring new facilities, the company will also have a modern and efficient warehouse in Brasilia, which will enable it to improve the supply chain across its product range and reach the market more effectively in the Midwest region.
The company’s CEO, Simon Litherland, stated that the acquisition of these brands for its Brazilian portfolio will accelerate its growth in one of its most important markets and generate value overall. This decision is in line with their strategy to expand the business and accelerate growth in Brazil, which will enable them to have a significant presence in the Midwest region. This will give them the opportunity to leverage their existing brands in territories where they have historically underperformed, while adding new brands to their established market regions.
In 2015, Britvic first forayed into the Brazilian market by acquiring Ebba, followed later by the acquisition of Bela Ischia in 2017. From these purchases, Britvic has positioned popular fruits such as Maguary, Dafruta and Bela Ischia as strong, nationally recognized brands thanks to its focus on innovation.
In addition, the Maguary brand has a long history dating back to 1953 and, like other European brands of flavor concentrates, is very popular with families for consumption at home. Thanks to this family tradition and know-how, Fruit Shoot was launched in Brazil under the name Maguary Fruit Shoot, following the same strategy used by Britvic in Europe with its Robinsons and Teisseire brands. In recent years, new product categories have been launched, such as Puro Coco and Natural Tea, both ready-to-drink and belonging to the coconut and iced tea categories. Recently, the Brazilian team has further expanded Maguary’s presence with the launch of a chocolate-flavored plant-based beverage.
The Dafruta Tropical brand decided to expand into the flavor concentrates market, using the experience and know-how of Robinsons. This product line stands out for using real fruit, offering a variety of flavors and being pre-sweetened, which differentiates it from traditional concentrates in Brazil that require the addition of sugar by the consumer. More recently, Dafruta has expanded its portfolio with the launch of Britvic Mixers and a premium range of cocktail concentrates called Mathieu Teisseire.
In Brazil, the fruit beverage market has experienced a significant increase, which is a perfect fit for Be Ingredient, a company specializing in the cultivation and processing of fruit. This company supplies natural ingredients for Britvic and other international markets.
Britvic acquires Brazil’s Extra Power
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