Anheuser-Busch Steps Into Soda And Juice Market -- WSJ
July 21 2017 - 3:02AM
Dow Jones News
By Jennifer Maloney
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 21, 2017).
Just as the soda giants are going after startups making healthy,
non-alcoholic fizz, so too is Anheuser-Busch InBev NV.
After signing a deal last year with Starbucks Corp. to sell
ready-to-drink tea, the world's largest brewer on Thursday said it
is acquiring Hiball Inc., a San Francisco-based company making
organic energy drinks and carbonated juices and water. Terms of the
deal weren't disclosed.
João Castro Neves, chief executive of AB InBev's U.S. subsidiary
Anheuser-Busch, said the company and its U.S. wholesaler network
were looking for new opportunities in non-alcoholic beverages.
"We're looking for high growth, high margins," he said. Energy
drinks and sparkling water fit the bill, he said. Hiball was a
"natural place to go."
AB InBev in Latin America sells a range of energy drinks, soft
drinks and teas. Its latest step toward a similar expansion in the
U.S. is a modest one. Hiball, founded in 2005, has 20 employees. It
had retail sales of about $40 million over the last 12 months,
according to a person familiar with the matter.
Its products include Hiball Energy, a line of caffeinated drinks
with ingredients such as guarana and ginseng, and Alta Palla, a
line of sparkling juices with organic and fair-trade
ingredients.
AB InBev has been broadening its U.S. portfolio as consumers
shift away from American lagers, including its Budweiser and Bud
Light brands, toward craft beers, Mexican imports, wine and
spirits. Nonalcoholic drinks represent about 13% of AB InBev's
global volume. In the U.S., the percentage is negligible, a
spokeswoman said.
Meanwhile, as Americans drink less soda, Coca-Cola Co., PepsiCo
Inc. and other beverage companies have been expanding into
fast-growing categories such as sparkling water and health and
wellness beverages.
Dr Pepper Snapple Group Inc. in November agreed to pay $1.7
billion for Bai Brands LLC, which makes low-calorie, coffee-fruit
drinks. At the same time, PepsiCo bought KeVita Inc., a maker of
fermented probiotic and kombucha beverages.
Write to Jennifer Maloney at jennifer.maloney@wsj.com
(END) Dow Jones Newswires
July 21, 2017 02:47 ET (06:47 GMT)
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