Britvic Pepsi Bottling Agreement

Britvic is one of the leading brands of soft drinks in Europe. The company combines its own portfolio of leading brands like Fruit Shoot, Robinsons, Tango, J2O, London Essence, Teisseire and MiWadi with PepsiCo brands such as Pepsi, 7UP and Lipton Ice Tea, which Britvic produces and sells in Germany under exclusive PepsiCo deals. “We are very pleased to announce this new and improved exclusive bottling date with Britvic in the UK and to further strengthen our portfolio with rockstar`s exciting addition. This decision was based on our history of consistently strong performance in the market, supported by Britvic`s continued commitment to investing significantly in our brands. In addition, the new agreement also includes the rockstar energy brand, for which the British company will assume responsibility from 1 November. Most importantly, our shared values have made sustainability an integral part of this new agreement, which involves our recent mutual obligation to ensure that all our bottles are made from 100% recycled PET by the end of 2022. This supports PepsiCo & Britvic`s vision of creating a circular economy for plastic and creating a world where plastics should never become waste. We look forward to the next chapter of our strengthened relationship with Britvic. The agreement extends the relationship that began in 1987 until 31 December 2040. British company Britvic has extended its franchise agreement with PepsiCo for the production and distribution of soft drink brands such as Pepsi, 7UP and Mountain Dew in the United Kingdom (UK) by 20 years. Britvic confirmed this morning that it has completed the sale of its juice plants in France to European bottling giant Refresco. After its failed IPO, C&C`s sold its soft drink brands to Britvic, which led the company to own a number of brands in the Republic of Ireland and Northern Ireland, including Ballygowan Water, Britvic, Cidona, MiWadi and Energise Sport, as well as the rights to the Pepsi and 7 Up brands in the region through its bottling agreements with PepsiCo. [18] Britvic announced today that it has entered into an agreement with PepsiCo for a new 20-year exclusive bottling agreement for the production, distribution, marketing and distribution of its soft drink brands, including Pepsi, 7UP and Mountain Dew, in the United Kingdom. The new agreement extends the relationship started in 1987 until 31 December 2040 and includes the Rockstar energy brand, for which Britvic will assume responsibility from 1 November this year.

Despite the current economic situation in the country, sales of well-known soft drink brands seem to be holding up somewhat well. Britvic PLC, based in Chelmsford, benefits (listed in London under BVIC, capitalised at £681 million). The company`s half-year results figures, which end on 12 April 2009, are encouraging – the turnover, profit and dividend are all higher than the last reference period. But what most investors are interested in in the medium term is how far Britvic can still go in this relatively weak and mature business. Will it be bought by Pepsi, as some investors are hoping, or will it build a large European business with a portfolio of well-known brands, as other more ambitious investors are planning? The company is currently the second largest producer and distributor of soft drinks in the UK (Coca Cola Enterprises is in first place). . . .