Coca-Cola has reached an agreement with Alizé to acquire the Tropico brand of beverages in France as it targets growth in the flat fruit drinks sector.
The deal marks the first time Coke has acquired a French brand, and the company said it forms part of its diversification strategy to offer a wider choice to consumers.
Tropico products are available in cans and PET bottles in France and Belgium. The brand reportedly generated revenue of around $34 million last year.
Coca-Cola said that the move highlights its ambition to become a major player in flat fruit drinks, an area which it says “has grown steadily in recent years”. It will also explore the possibility of expanding the brand to other markets in the coming months.
François Gay-Bellile, president of Coca-Cola France, said: “We are delighted to be able to rely on the Tropico brand to accelerate our development in the very dynamic segment of flat fruit drinks.
“We rely on our experience in other countries to quickly bring innovation to this category and energise it. The successful launch of Fuze Tea earlier this year and the promising performance of our Honest (organic drinks) and Smartwater brands further strengthen our determination to accelerate our portfolio expansion strategy.
“This acquisition is a step further in this direction, allowing us to better meet the expectations of French consumers.”
The deal follows a series acquisitions around the world by Coke as it aims to continue to diversify its beverage portfolio in response to consumer trends.
A month ago it bought UK coffee chain Costa, which operates 4,000 retail outlets, in a deal worth £3.9 billion. It has since entered the kombucha market with the purchase of Australian brand Organic & Raw Trading Co, which makes the Mojo brand of kombucha drinks.
Coca-Cola also said last week it is “closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world”, as speculation abounds that the company is looking to develop marijuana-infused beverages.
© FoodBev Media Ltd 2019