After a decade spent building their portfolios by aggressively acquiring or investing in small, innovative beverage brands, the heady days for strategics may be ending.
That’s according to a new report released this month by Rabobank in which analysts unpacked the various conditions that have seen the likes of Coca-Cola, PepsiCo and others forced to adjust their investment strategies. The years of rapid expansion have created bloated portfolios that are now being culled, but the interplay of commercial and economic factors means that the pivot is about more than just how fast brands can scale to expectations.
Speaking with BevNET managing editor Martín Caballero, Rabobank global strategist Steve Rannekleiv discussed the changing investment climate amongst the industry’s large strategic leaders and how those companies are assessing value in the current market. The interview also touches on the shifting role of brand incubators, how strategics are bringing product development in-house, the impact of more innovative private label products, and where early stage brands can still find investment opportunities.