Coca-Cola acquiring Energy Brands Inc.

Coca-Cola acquiring Energy Brands Inc.

Coca-Cola Co. has confirmed that they are now acquiring the makers of the Glaceau Vitaminwater for $4.1 billion.

The company would now be taking over the operations of closely held Energy Brands Inc. This company controls about 30 percent of the U.S. market for waters spiked with vitamins and minerals.

Coca Cola is hoping that this acquisition would help them close the gap with PepsiCo Inc. in the fast-growing market for flavored water in the US market.

Incidentally, this is the largest acquisition of its kind in the Coca-Cola’s 115-year history.

The company currently accounts for 5 percent of the U.S. market for water drinks. Pepsi dominates the market with a market share of around 45 percent with its So Be, Aquanaut and Propel brands.

Sales of these products are rising while the aerated drink sales are dropping in the recent years.

Market analyst Walter Todd spoke about this Coke deal: “This is the position Coke’s in, having to pay up because there are so few assets out there that can move the needle for them. Coke needs Glaceau.”