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Beverage market buzz: Balancing diversification versus focus

30 June 2025 14:56 RaboResearch
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In this edition of Beverage market buzz, we look at some of the moves that beverage companies have made (or failed to make) as they seek to diversify.

Intro

The post-Covid era has challenged many beverage companies with supply chain disruptions, changing consumer habits, and high inflation. As a result, many beverage companies today – especially alcoholic beverage companies – are facing declining volumes and/or margin pressure. As organic growth becomes elusive, inorganic growth becomes more attractive, particularly acquisitions into new beverage segments or geographies that offer better growth prospects.

In this edition of Beverage market buzz, we look at some of the moves that beverage companies have made (or failed to make) as they seek to diversify. The example of Carlsberg's acquisition of Britvic highlights some of the advantages of diversifying into adjacent segments.

And while the potential to generate synergies and drive growth seems fairly obvious, some brewers have missed great opportunities to expand into soft drinks. As the second article points out, PepsiCo’s acquisition of poppi is just the latest in a series of non-alcoholic beverage brands that were built using beer wholesalers only to be acquired by a soft drink company. While big US brewers have talked a lot about expanding into total beverages, and especially into non-alcoholic drinks, their approach to diversification to date has been extremely cautious.

Finally, the last article briefly explores the various diversification moves that Brazilian coffee players have been making in recent years, expanding beyond traditional coffee into ready-to-drink and functional beverages and more.

Disclaimer

The information and opinions contained in this document are indicative and for discussion purposes only. No rights may be derived from any transactions described and/or commercial ideas contained in this document. This document is for information purposes only and is not, and should not be construed as, an offer, invitation or recommendation. Read more