Blog: Dean BestWho else could PepsiCo be targeting?

Dean Best | 6 December 2010

After its move to buy Wimm-Bill-Dann, the market is rife with speculation about PepsiCo's other M&A targets, as the US food and drink giant looks to expand its so-called "nutrition" business.

PepsiCo's plan to buy Wimm-Bill-Dann, Russia's largest dairy processor, is the company's first significant move in the dairy sector, a business the cola and crisps maker sees as central to its aim of growing sales of healthier food and drinks.

Wimm-Bill-Dann will take PepsiCo's "nutrition" sales from US$10bn a year to $13bn but the US group is targeting sales of $30bn by 2020, meaning more M&A activity is likely - how ever much CFO Hugh Johnston tries to play it down.

In the wake of the Wimm-Bill-Dann deal, PepsiCo was immediately touted as a possible runner in the race for global yoghurt brand Yoplait.

And, on Wall Street, some analysts were discussing whether PepsiCo could make a move for soy-milk brand Silk, owned by Dean Foods, the largest dairy processor in the US and a company that is facing questions over its balance sheet.

The identity of PepsiCo's next target is uncertain. What looks (almost) certain is that chairman and CEO Indra Nooyi will again reach for the chequebook to take PepsiCo to that 2020 sales target.


BLOG

Barilla puts sustainability centre stage

Barilla's 2016 results statement, published last week, makes interesting reading, not because of the Italian food group's commercial performance, but for the emphasis placed on sustainability achievem...

BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

just-food homepage



Forgot your password?