Coca-Cola acquires tea company in Brazil
22/3/2007 16:21
Coca-Cola's branch in Brazil said yesterday that it has acquired local
beverage company Leao Junior S.A., which produces the widely popular ready-made
tea Matte Leao.
Coca-Cola said in a statement that it will maintain Leao
Junior's current board of directors.
The Brazilian branch president Brian
Smith said the acquisition will lead to a diversification of Coca-Cola products
in the country -- non-alcohol beverages.
Leao Junior registered a revenue of
159 million reais (US$77 million) in 2006, up by 18.2 percent compared to 2005,
and the total sales rose by 29 percent in 2006.
The company was founded in
1901 and its main product Matte Leao, made from a native herb, has become
increasingly popular since Leao Junior launched its ready-to-drink version in
the late 1980s.
In December 2006, Mexican soft drink bottler Coca-Cola Femsa
and Coca-Cola acquired Del Valle Group in Mexico for US$470 million, which
included Del Valle's branch in Brazil, where its products lead the juice
market.
In August 2005, Coca-Cola also acquired Brazilian juice company Sucos
Mais for 100 million reais (US$48.5 million).
Xinhua
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