Lucozade and Ribena sold to Japanese firm for £1.35bn

GlaxoSmithKline (GSK) has sold its Lucozade and Ribena business for £1.35bn to Japanese company Suntory Beverage & Food (SBF).

Lucozade: energy drink range and sister Ribena brand sold to Suntory Beverage & Food
Lucozade: energy drink range and sister Ribena brand sold to Suntory Beverage & Food

News broke last week of the two companies being in advanced talks about the sale, and the deal is expected to complete by the end of the year, subject to regulatory procedures.

SBF is a global soft drinks company based in Japan with global consolidated sales of more than £12bn in 2012. In 2009, the company bought the Orangina Schweppes drinks brand for more than $3bn (£1.92bn).

GSK had announced it would conduct a strategic review of the drinks brands following a 1% revenue decline in 2012, which led to the decision to sell off the brands by the end of 2013.

In August, GSK said it was splitting the company into two separate business operations to prepare for the sale, with Peter Harding leading the Lucozade and Ribena business, and Carol Smith appointed as UK and Ireland marketing director for the division.

David Redfern, chief strategy officer, GSK, said: "Lucozade and Ribena are iconic brands that have made a huge contribution to GSK over the years, but now is the right time to sell them as we increase the focus of our Consumer Healthcare business and execute the delivery of our late-stage pipeline of pharmaceuticals and vaccines.

"We believe the future of Lucozade and Ribena is in good hands given SBF’s established beverages business, ambitious growth plans and also their recognition of the strong performance and capability of the GSK employees working on these products."

Carlton Lawson will lead the GSK Consumer Healthcare business, which spans oral health, wellness, nutrition and skin health.   

Become a member of Campaign from just £45 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content

Share

1 Why creative people have lost their way

What better way to kick off Campaign's relaunch than with another think piece on the current failings of our industry, written by an embittered, pretentious creative who misses "the way things used to be"...

Share

1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).