Refresco makes move on German private label market

Refresco is planning to acquire Soft Drinks International (SDI) in order to expand its presence in the German market for private label soft drinks.

Financial details of the takeover have not been revealed but Refresco, which has itself a turnover of €1.14bn, said SDI’s turnover is about €140m.

Germany

By acquiring the producer of soft drinks and water, Refresco intends to build and diversify its position in Germany. Although SDI does export to other European countries, the company primarily concentrates on Germany and the Benelux countries, with production facilities in Erfstadt (Germany) and Heerlen (The Netherlands).

By adding the SDI operations to those of Refresco, the larger company will become a full service provider of non-alcoholic drinks in Germany. Currently the Refresco product range in the country consists primarily of fruit juices, so bringing CSI into the fold will add carbonated soft drinks (CSDs) to the portfolio.

Consolidation

At the same time, Refresco expects the acquisition to reinforce its competitive position to become one of the top three biggest makers of soft drinks and fruit juices in Germany.

Jürgen May, CEO of Soft Drink International (SDI), said the question of size was imperative when considering the acquisition.

May said: “The beverage market in Germany is going through a challenging phase of consolidation. Businesses must attain a critical mass if they want to succeed in meeting these challenges.

“SDI has made the right move in joining the Refresco Group, making it one of the major players in Europe and in Germany, and this move has had my full backing from the start.”