Introduction
Bidcoro Africa Limited, a company linked to Bidco, has successfully acquired the entire issued share capital of Suntory Beverage and Food Kenya, the producers of the well-known Ribena and Lucozade brands. This acquisition, recently approved by the Competition Authority of Kenya (CAK), marks a strategic move in Kenya's competitive beverage market.
Expanding Influence in the Beverage Sector
Incorporated in Kenya, Bidcoro Africa Limited is actively engaged in the manufacturing, processing, marketing, and sale of various beverages, including concentrates, soft drinks, and ice lollies. The company's portfolio boasts popular brands such as Suntop, Sunquick, and Suncola. With the acquisition of Suntory Beverage and Food Kenya, Bidcoro aims to address the underperformance of its new acquisition by leveraging its robust production and commercialization capabilities.
Navigating a Competitive Landscape
Suntory Beverage and Food Kenya holds an estimated market share of less than 2% in a beverage industry dominated by Coca-Cola Beverages Africa, which controls a commanding 65% of the market. Other notable players include Delmonte Kenya (5.23%), Kevian Kenya (4.4%), Excel (2.87%), and Predator (2.2%). Additionally, brands such as Red Bull, Highlands, and PepsiCo each hold between 1% and 1.7% of the market share, with Bidcoro and Bidco Africa Limited together controlling around 1%.
No Negative Public Interest Concerns
The Competition Authority of Kenya, after thorough evaluation, determined that the acquisition would not raise any public interest concerns. Notably, there will be no job losses as a result of the transaction, with Suntory Kenya employees set to be retained on terms comparable to those they had before the acquisition.
