June 2, 2016

Coca-Cola and its largest Latin American bottler, Coca-Cola Femsa SAB have agreed to acquire Unilever’s soy-based business, AdeS for $575 million.

The deal will provide Coca-Cola a double advantage in that it will expand the company’s non-carbonated portfolio and will boost its presence in Latin American markets.

Founded in 1988, AdeS was the first major soy-beverage brand launched, and is the largest soy-based beverage brand in Latin America with a presence in Brazil, Mexico, Argentina, Uruguay, Paraguay, Bolivia, Chile, and Colombia. Last year the company had sales volume totaling 56.2 million cases and net revenues of US$284 million.

“AdeS is a leading brand in its category and we are very excited to add it to our stills portfolio. This continues the successful joint venture partnerships with our Latin American bottling partners and brings more innovative offerings to our markets,” said Brian Smith, President, Latin America Group, The Coca-Cola Company in a press statement.

Unilever has faced challenges in recent years due to slow growth, a lack of innovative development, and soft demand. In response, the company continues to divest itself of its food assets under its plans to streamline operations and divest non-core businesses. The company has already divested itself of its Slim-Fast and Ragu brands, and in March agreed to sell its Indian rice business to LT Foods.

The AdeS acquisition has been approved by the Boards of all three involved companies but remains subject to gaining regulatory approvals and meeting the usual closing conditions. Upon closing, the AdeS business will be integrated into the shared non-carbonated beverage platforms of Coca-Cola FEMSA and the Coca-Cola Company in its franchise territories.

“AdeS complements and reinforces our non-carbonated beverage portfolio offer, providing our consumers with a wider range of choices. Together with our partner, The Coca-Cola Company, we will leverage the leading position of the AdeS brand, integrating it into our robust route-to-market model to drive value and further innovation on this new beverage platform,” said John Santa Maria, Chief Executive Officer of Coca-Cola FEMSA.

In markets in which Coca-Cola FEMSA does not have a presence, Coca-Cola will work with its bottling partners to develop AdeS under existing bottling contracts.

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GAI News staff