Britvic has acquired the Extra Power energy drink brand in Brazil from GlobalBev. This marks an important extension of Britvic’s Brazilian operations, consistent with Britvic’s strategy to accelerate and expand its presence across Brazil.
With 42% market share in its core regions near Brasilia, Extra Power enables access to the fast-growing, high-margin energy category. In addition, the acquisition includes a modern, efficient warehouse in Brasilia that will enhance Britvic’s supply chain efficiency across its wider portfolio and route to market into Brazil’s Centre-West region.
In the year to December 2022, the acquired portfolio generated R$118m of net sales, growing 26% on the previous year.
Simon Litherland, Chief Executive Officer, said: “I am delighted by this acquisition, which enables us to enter the higher-margin energy category in Brazil. In line with our strategy to accelerate and expand our presence in the country, we will access a growing category, extend our regional presence and deliver efficiencies in our supply chain. I am confident this acquisition will accelerate our growth trajectory in one of our key markets and generate great value for our business.”
This acquisition gives Britvic a meaningful presence in Centre-West region (Distrito Federal & Goias), providing the opportunity to scale its existing brands into a region where the business has historically under-indexed, as well as bring the acquired brand into Britvic’s existing footprint.
Britvic first entered the Brazilian market in 2015 with the acquisition of Ebba, followed by the acquisition of Bela Ischia in 2017. Since then, Britvic has developed fruit favourites such as Maguary, Dafruta and Bela Ischia into strong national presences known for innovation.
The Maguary brand heritage dates back to 1953 and, similar to the European flavour concentrates brands, is consumed by families at home. This heritage and family awareness enabled Fruit Shoot to be launched in Brazil as Maguary Fruit Shoot – following the same principle Britvic has followed in Europe, where Robinsons and Teisseire are the halo brands.
More recently the local team has expanded the brand’s presence further launching a plant-based chocolate drink. New category launches in recent years have included Puro Coco and Natural Tea, both of which are ready-to-drink formats in the coconut and iced tea categories. The expansion of the portfolio continued in 2020.
Dafruta Tropical was launched in the flavour concentrates category, utilising the technical know-how of the Robinsons formulation. This new range uses real fruit, has a range of flavours and is pre-sweetened, differentiating it from the traditional concentrates in Brazil which require sugar to be added by the consumer. More recently the portfolio has expanded with the launch of Britvic Mixers and the premium Mathieu Teisseire range of concentrates for cocktails.
The growth market for fruit drinks in Brazil is complemented by Britvic’s fruit growing and fruit processing company, Be Ingredient, providing natural ingredients for Britvic and the international market.
In the financial year 2022, Britvic generated £143m of revenue in Brazil.
The acquisition of Extra Power will be funded from existing internal resources and external debt facilities.
The acquisition will require regulatory clearance but is expected to be completed around the start of Britvic’s next financial year in October 2023.