Is The Acquisition Of AdeS Significant For Coca Cola?

http://www.forbes.com/sites/greatspeculations/2016/06/08/is-the-acquisition-of-ades-significant-for-coca-cola/#75850303455f

When I think of Coca-Cola I think of a nice soda beverage that I can enjoy on a hot summer day or something I may have alongside a slice of pizza. The word “healthy” does not even come to mind. But as the article discusses, Coca-Cola has entered into an agreement to acquire “Unilever’s AdeS soy-based beverage business.” It’s interesting that Coca-Cola would want to enter into this segment. What’s even more interesting is that the revenue generated by this brand only resulted in $284 million which isn’t much compared to Coca-Cola’s total revenue of $40 billion.  Digging in just a little further we can see the main reason that Coca-Cola is making this acquisition and that is to gain access to markets such as Brazil, Mexico and Argentina which is where the brand currently sells in. This allows Coca-Cola to place a greater part of their foot in South America in order to strengthen their presence and continue seeking potential opportunites in countries they may not have penetrated significantly. We can all see that even large companies that have made a name for themselves may sometimes need to enter new segments or find alternatives in order to increase their international presence which is what will lead to more growth and more profits.

 

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