The future ownership of Smith-Kline Beecham’s Lucozade, Ribena and
Horlicks drinks brands looks uncertain this week as the UK company
attempts to tie-up the biggest corporate merger in history with US firm
American Home Products.
Industry analysts believe the consumer brands would sit uneasily in what
could become the largest pharmaceuticals group in the world.
’These drinks would not fit the core strategy, which is to create a true
healthcare business,’ said one leading drugs analyst.
Although a SmithKline Beecham spokesman declined to speculate on their
future, the company could be forced to sell the brands which, with
consistently strong sales, would have significant appeal to firms such
as Procter & Gamble or Britvic Soft Drinks.
Ribena and Lucozade, which started out as ’nutritional drinks’, have
evolved into leading mainstream soft drinks brands generating revenues
of pounds 135m and pounds 110m respectively in 1996 (AC
Nielsen/Marketing Survey).
Ribena is the market-leading ’ready to drink’ beverage and Lucozade is
the best-selling carbonate after Coca-Cola and Pepsi.
Over the past 12 months, SmithKline Beecham has allocated an advertising
spend of pounds 8m to Lucozade, through Ogilvy & Mather, and over pounds
6m to Ribena and Horlicks, through Grey Advertising (ACN MEAL).
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