Battle for 'new age' soft drinks heats up as Pepsi enters the fray

- Last updated on GMT

Related tags: Coca-cola, Pepsico

The battle for so-called "new age" soft drinks is set to heat up after PepsiCo bought the owner of the successful SoBe range.The US-based company has...

The battle for so-called "new age" soft drinks is set to heat up after PepsiCo bought the owner of the successful SoBe range.

The US-based company has taken over South Beach Beverage Company, which produces the fastest growing brand in the rapidly expanding market for non-carbonated soft drinks.

It will be operated through PepsiCo in North America, but no plans have been revealed yet for developing the SoBe range, which includes fruit blends and energy drinks, in the UK.

Pepsi distributes its products in Britain through its joint venture, Britvic, and is expected to buy out its partners Bass, Whitbread and Allied Domecq to take full control.

PepsiCo chief executive Gary Rodkin said: "Based on the initial popularity of SoBe in several markets outside the US, the opportunities for the brand may be truly global."

The deal, for an undisclosed sum, follows the £986m acquisition of Snapple non-carbonated soft drinks by Cadbury Schweppes, which distributes in the UK through a joint venture with Coca-Cola.

Rodkin said: "SoBe enables us to enter the exploding market for new age refreshment."

Related topics: Soft & Hot Drinks

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