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View Full Version : Will Coke still try to buy Arizona??



Dr Pepper 70
05-26-2007, 12:49 PM
With Coke now having Glaceau and Fuze will they still try to purchase Arizona? I would think not, but I never felt that they would pay 4.2 bil for a 300 mil dollar company.

fusion
05-27-2007, 12:33 AM
Well, considering that Tata paid over $300 million for just a 30% stake in Glaceau, I think the company is certainly worth more than 300 million - but certainly not 4.1 billion.

popologist
05-27-2007, 10:21 AM
i think arizona would still be a good purchase.

coca-cola needs some "established" non-carbonated beverages to take on pepsi's strong portfolio.

i think coke's best purchase would be snapple. but i haven't heard any rumors about that.

Dr Pepper 70
05-27-2007, 07:42 PM
Tata over paid as well. I heard the company was worth 300 mil on the world news. I think the market share is what Coke paid big for. If the cost was worth it for Coke then I guess they are a 4.1 bil dollar company. Glaceau is only going to get BIGGER!!

DrPepperYummy
05-29-2007, 02:05 PM
Well, considering that Tata paid over $300 million for just a 30% stake in Glaceau, I think the company is certainly worth more than 300 million - but certainly not 4.1 billion.

tata paid I believe 667million for the 30% with rights to buy 10% more but they never got the chance to do that when coke walked in and said no price is too high... they will now get 1.2 billion for their 30% from coke later this year.

The company may not be worth 4.1 billion in todays sales... but think of where coke is going to be able to take it... outside the USA... so they will instantly make the volume of glaceau 4-10x more than what it is now adding their large distribution network worldwide... so now it becomes worth well over 4.1 billion once they get it established... and once you add the growth america has been achieving along with estimates on worldwide growth after establishing it... I think they just got a bargain 10+ billion dollar company for only 4.1 billion... its a steal and I'm surprised nobody else was more agressive.

I only wish I could have gotten stock the many times I asked when they came to our offices (although they always said they stood firm that they are not for sale and would be sticking with us too).. now you can expect to see a new "how to become successful" book from the CEO's... along with someone selling tapes on late night tv trying to tell you how to make the next glaceau...

juniorjin
06-05-2007, 02:36 AM
Dr PepperYummy is absolutely correct.

Coke realizes just how much global impact glaceau is going to have.
Glaceau has done an exceptional job appealing to different segmented groups of customers....most who are very hard to reach with one single product line.
In Canada, the perfect example is that a few Canadian companies are coming out with knockoffs, but still, people are still looking for vitaminwater.
When customers ask for an item by name you know you have a hit on your hands.
It would've been the same if Coke or Pepsi attempted to purchase Red Bull or Fiji Water in the early part of the decade.

Arizona would not be such a bad idea to purchase, considering its staying power and its stability. This idea seems more feasable considering Nestle and Coca-Cola have essentially decided that they won't be collaborating as intently as before.

fusion
06-05-2007, 11:01 PM
Coke has to look no further than the CCE/AriZona deal to see how sucessful AriZona could be for them. There's already a product shortage.

Booma69
06-05-2007, 11:37 PM
What flavors does CCE sell?

DrPepperYummy
06-06-2007, 05:13 PM
Dr PepperYummy is absolutely correct..

I can already tell you are a very intelligent person... lol


Arizona would not be such a bad idea to purchase, considering its staying power and its stability. This idea seems more feasable considering Nestle and Coca-Cola have essentially decided that they won't be collaborating as intently as before.

I'll be first to go on record and start a rumor... coke will own snapple within a couple years... DATE THIS! Once that billionaire investor forces cadbury to split into two companies and they become a bargain to a private equity group who will look at quick ways to get some cash to impress holders, they will look at the few things they can sell off easily for a huge profit... a la snapple... and I think you might see a few other shifts quickly in their holdings...

It worries me to see what my company may become but thats just the sad reality of the rich get richer by abusing the people who spent a lifetime building something up...

NRGSLLR@
06-06-2007, 05:49 PM
Let me know when they are ready to sell DP, I think I could find a group of investors who may be interested in that brand.

Dr Pepper 70
06-06-2007, 06:33 PM
Yummy
Why don't you go to work for Coke?? You seem to have it all figured out and you don't seem to think much of Cadbury. Cadbury has not sold off anything you built. Glacaeu was not owned by Cadbury. What have they sold??

They will not sell Snapple!! They may get behind it in ways you have never dreamed of. How is this for a rumor?? Snapple is going to change in the future for sure, but not change hands.

I guess you think Coke will buy Arizona, Snapple and Deja Blue just for fun.

greg
06-06-2007, 08:29 PM
I agree with DP70. Snapple will not be sold if and when Cott/Privity Eguity Group takes over Cadbury Beverages. Why would someone invest so much into a beverage company and then start selling off established brands unless they were having flash backs of the 80's and visions of the movie Wall Street?
Snapple is a valuable part of cadbury and the New Age drinks coming out now can be competed against with Snapple if Snapple would just re-invent itself a little as a brand.

DP, Sunkist and 7Up are strong carbonated drinks but the market is slowly fading ( although all 3 are doing better than Coke and Pepsi as far as growth in their respective individual CSD category) Snapple will keep the company in the RED.

I see major brand extensions coming out of Snapple if given the the right focus.

fusion
06-06-2007, 10:13 PM
What flavors does CCE sell?

Lemon, Sweet, and Green w/ Ginseng & Honey, in an exclusive 34oz package (looks identical to the old 33.8oz bottle).

DrPepperYummy
06-07-2007, 11:58 AM
Yummy
Why don't you go to work for Coke?? You seem to have it all figured out and you don't seem to think much of Cadbury. Cadbury has not sold off anything you built. Glacaeu was not owned by Cadbury. What have they sold??

1. I very much like cadbury's portfolio
2. I never said they HAVE sold off something I've built already
3. I never even mentioned glaceau in my message
4. I never said they sold anything

I was simply throwing a rumor out there I heard others mention cause this is a forum for discussion not just hey what a stupid idea how dumb could you be you idiot how dare you come up with an idea or post a topic I don't agree with go work for coke... type message board.


They will not sell Snapple!! They may get behind it in ways you have never dreamed of. How is this for a rumor?? Snapple is going to change in the future for sure, but not change hands.

How do you know they won't sell snapple, are you on the new board of directors that will be appointed when/if they split when/if they get bought. I mean if you're going to be allowed to have a 100% fact opinion give me some room here to have just a wild thought to create discussion not a negative response of how stupid...


I guess you think Coke will buy Arizona, Snapple and Deja Blue just for fun.

No I don't think coke would ever buy arizona because the price just won't be right, and no I don't think they would buy dejablue because they already have a strong brand so why would they invest in another product thats not even near where they are with their own when they could just as easily make a generic clone with a new name and bottle it in the same dasani facilities... but yes I do think they would seriously entertain the idea of snapple.

So really before you rant and rave against my idea's, give them some thought and don't just be negative cause "it would never happen". Give some feedback, like this is why I don't think that would be a good move for them, this is why I don't see market conditions lending itself to that idea... etc etc etc... not "it'll never happen go work for coke since you must hate cadbury"

I'm trying to open up discussion on idea's, this is why I've posted so few times over the years because of responses like yours being typical, can't wait for the rebuttle on this one since I know you'll be enraged at my stupidity clearly.

DrPepperYummy
06-07-2007, 12:10 PM
I agree with DP70. Snapple will not be sold if and when Cott/Privity Eguity Group takes over Cadbury Beverages. Why would someone invest so much into a beverage company and then start selling off established brands unless they were having flash backs of the 80's and visions of the movie Wall Street?

Well I have never seen the movie but I'll assume its what a lot of investment groups do... buy companies and split/seperate them to the highest bidder for products or services... and possibly have a smaller form of the previous company leftover which gets sold off as well for a lower price since they have less now to another group that thinks they can rebuild or better whats left.

It's all about figuring out how much they can get for what the quickest, not saying this is the reality of what will happen but its definately a very real possibility. They spend 9 billion buying it, and end up with 12 billion after selling it off in less than a year. (I'm just making these numbers up)

Maybe someone doesn't neccesarily want all the products but wants the distribution network more because it would be well combined with someone elses products who would gain national distribution now for a bargain price rather than building/buying the whole company before. All sorts of possibilities



Snapple is a valuable part of cadbury and the New Age drinks coming out now can be competed against with Snapple if Snapple would just re-invent itself a little as a brand.

I agree completely... my worry is I see a company that had intentions of becoming a power buying up independant bottlers so it could distribute products quicker and more efficiently and make more money being able to do so, to a company thats on the verge of becoming someone elses who will possibly lead it in a completely different directions once they become the controlling factor trying to impress other shareholders now. who knows for sure.

Dr Pepper 70
06-07-2007, 06:14 PM
Please read you post again.

Mark this date Coke will buy Snapple???

Abusing the people who spent a lifetime building the brands??

Yes I do have a pretty good idea where we are headed and I would never post that on a board like this.


What market do you work in?? If your not ashamed of it.

With all of that said I am not ranting and I hope you are not sayinig these things in the trade.