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

US food agency hints at direction of travel with "policy roadmap"

It's light on specific details but a new "strategic policy roadmap" for 2018 from the US Food and Drug Administration should give manufacturers a sense of where the agency could be looking to act this...

BLOG

Vegan tourist tales

I sampled some of the products launched in the UK in the New Year, aimed at those seeking to eat more healthily or cut down on their meat consumption....

BLOG

"We're evolving" - flagship US lobby group insists change coming as more members quit

Hershey and Cargill are the latest US-based food majors to have decided to leave The Grocery Manufacturers Association - and the lobby group says it is looking to change to meet the "disruption" in th...



Forgot your password?