GlaxoSmithKline to Sell Lucozade and Ribena Brands
UK-based global pharmaceutical and healthcare group GlaxoSmithKline has decided to dispose of its Lucozade glucose energy and sports drinks, and Ribena fruit juice-based drinks brands. The two brands are part of GSK’s Nutrition business which is incorporated within the group’s Consumer Healthcare division. The disposal is part of GSK’s efforts to reshape its business, improve strategic focus and enhance its growth profile.
“In April 2013, we completed the strategic review of our nutritional drinks brands Lucozade and Ribena and concluded that the tremendous growth potential of these iconic brands, particularly outside the ‘core’ Western markets, could be better leveraged by companies with existing category presence and infrastructure in these regions,” explains Sir Andrew Witty, chief executive of GlaxoSmithKline. “As a result, we have decided to pursue the divestment of these brands, subject to the realisation of appropriate value for GSK shareholders.”
GSK’s Nutrition sales grew 6% to £280 million in the first quarter. The category performance was driven by strong growth of the Horlicks brand inIndia(up 16%) and the Boost energy drink (up 23%). Ribena sales grew 2% but Lucozade was down 2%.
