British brands Luxazade and Ribena are being sold off by GlaxoSmithKline to Japanese company Suntory, who already own the brand Orangina Schweppes. The brands were sold for £1.35 billion.
Why Is GlaxoSmithKline is Selling?
GlaxoSmithKline is selling its soft drinks brands so that it can focus on pharmaceuticals.
Both Ribena and Lucozade have shown strong sales in recent years, with sales amounting to around £600 million last year. However, GSK are fine tuning their marketing and business strategy and soft drinks simply no longer fit in with their corporate plan.
Both Ribena and Lucazade were founded in the inter-war period – Ribena was first sold during the 1930s and Lucazade appeared a little earlier, in 1927.
Suntory Holdings was only listed on the stock market earlier this year on 2nd July 2013. It was founded in 1899 and is one of Japan’s oldest alcoholic beverage companies. As well as soft drinks they brew and distil a range of products including beer, rum and whisky. They also produce Boss Coffee and Iced Oolong Tea.