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*In the last few weeks, reports of the possible sale of the number one European manufacturer of private label soft drink and juice, Refresco, have been surfacing. Now, according to business news service Dow Jones, these rumors have been confirmed by unnamed persons. *

The news service states the three Icelandic owners are looking to sell Refresco for as much as €500m ($683.8m). Stodir, formerly FL Group, holds a 40% stake in Refresco after it led a €463m ($592m) buyout of the company in 2006 alongside Kaupthing Capital Partners and Vifilfell Bottling Group.

The consortium completed a €523m refinancing of Refresco in March and launched a sale process in September before Stodir and Kaupthing went into administration.

Any sale will be complicated by the collapse of Iceland's banking sector, which saw the government nationalise a number of financial institutions, and many companies, including Stodir and Kaupthing, seek bankruptcy protection.

At the moment, bankruptcy administrators are holding on to Refresco's equity following the collapse of Iceland's economy.

Consolidating and expanding Refresco specialises in private label fruit juices and soft drinks manufacturing for retail clients, as well as production under branded labels and co-packing for a number of A-brand partners.

Initially linked to Menken Beverages, the Dutch, Dordrecht-based company, Refresco Holdings was formed in 2000. Since its establishment, the company has grown to 18 production sites across Europe and has more than 2,200 employees.

In 2007, Refresco realised a turnover of over €951m ($1.4bn). The expected turnover for 2008 is €1.3bn ($1.9bn).

The company recently acquired Bavaria NV soft drinks production site, and only last month Zumos Pasucal and Refresco Iberia signed a letter of intent to closely cooperate in drinks manufacturing and packaging in the Spanish market.

In the November issue of Beverage Innovation magazine, CEO Hans Roelofs gave an in-depth interview where he made clear that further consolidation and expansion in Central and Eastern Europe for the private label industry was on the cards.