Bidco Africa Group’s joint venture has been granted approval to completely acquire the entity responsible for the Ribena and Lucozade brands.
According to media reports, this transaction will enhance the consumer goods manufacturer’s presence in the soft drinks sector.
The Competition Authority of Kenya (CAK) announced on Tuesday that it has unconditionally sanctioned the proposed acquisition of all issued share capital of Suntory Beverage & Food Kenya Limited by Bidcoro Africa Limited.
“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for non-alcoholic ready-to-drink (NARTD) beverages, nor elicit negative public interest concern,” said CAK.
Suntory Beverage & Food Kenya Limited, the producer of Ribena and Lucozade soft drinks, is entirely owned by Suntory Beverage & Food Asia Pte Ltd.
Suntory Beverage & Food Asia Pte Ltd is engaged in the beverage and food sector with operations across various regions, including Europe, Asia, Oceania and the Americas.
Bidcoro Africa Limited, a joint venture between Bidco Africa and the Danish company Co-Ro Food, specializes in the production and distribution of concentrates, soft drinks, and ice lollies, with notable brands such as Suntop, Sunquick and Suncola.
According to the CAK analysis, Bidcoro, which currently holds a market share of less than one percent, is projected to increase its market share to no more than 2.8 percent following the acquisition.
This development is expected to position Bidcoro among the top five beverage manufacturers in Kenya based on market share.
“The parties indicated that the rationale of the transaction is addressing the target’s (Suntory) underperformance by leveraging on the acquirer’s (Bidcoro) production and commercialisation expertise,” said CAK.
Popularity of Ribena and Lucozade in Kenya
Ribena and Lucozade are two popular soft drink brands in Kenya that have gained significant market share in recent years.
Ribena is a blackcurrant-flavored soft drink that originated in England in 1938 and is known for its high vitamin C content.
It is produced by Japanese beverage company Suntory, which acquired the brand from GlaxoSmithKline in 2013.
Ribena is available in various flavors like blackcurrant, strawberry, peach, and apple. It is one of the top 22 most popular soft drinks in Kenya, ranking 7th on the list.
Lucozade is an energy drink brand that originated in the UK over 80 years ago and is now sold in more than 15 countries.
It is produced by Suntory, which acquired the brand along with Ribena in 2013 for £1.35 billion.
Lucozade is one of the top 22 most popular soft drinks in Kenya, ranking 6th on the list.
The brand’s popularity in Kenya is likely due to its reputation as an energy booster, which aligns with the trend towards busier lifestyles and rising urbanization in the country.
Both Ribena and Lucozade have benefited from their association with the Suntory brand, which is a multinational company with significant resources and expertise in the soft drinks market.
