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  1. #1
    Join Date
    May 2007
    Posts
    25

    Default Will Coke still try to buy Arizona??

    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.

  2. #2
    Join Date
    Jul 2002
    Location
    Delaware
    Posts
    4,790

    Default

    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.

  3. #3
    Join Date
    Dec 2005
    Location
    NY
    Posts
    1,752

    Default

    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.

  4. #4
    Join Date
    May 2007
    Posts
    25

    Default

    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!!

  5. #5
    Join Date
    Oct 2003
    Posts
    176

    Default

    Quote Originally Posted by fusion View Post
    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...

  6. #6
    Join Date
    Apr 2004
    Location
    Toronto, Canada
    Posts
    81

    Default

    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.

  7. #7
    Join Date
    Jul 2002
    Location
    Delaware
    Posts
    4,790

    Default

    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.

  8. #8
    Join Date
    Mar 2005
    Location
    Cali
    Posts
    28

    Default

    What flavors does CCE sell?

  9. #9
    Join Date
    Oct 2003
    Posts
    176

    Default

    Quote Originally Posted by juniorjin View Post
    Dr PepperYummy is absolutely correct..
    I can already tell you are a very intelligent person... lol

    Quote Originally Posted by juniorjin View Post
    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...

  10. #10
    Join Date
    Jul 2006
    Location
    Illinois
    Posts
    190

    Default

    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.

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