Nutritional science for mind health products
DSM Nutritional Products
The company recently announced it the $4.1bn acquisition of Energy Brands, known as Glaceau, and its fortified water brands, including Vitaminwater.
While it is not Coca-Cola's first foray into the energy drink phenomenon, it does represent a more substantial leap forward and one that brings with it enormous marketing capacities not usually seen by more niche energy or functional drink manufacturers.
"This is an outstanding opportunity for both of our companies to build an expanded active lifestyle business, first in the United States and then around the world," said Muhtar Kent, president and chief operating officer of the Coca-Cola Company.
While Glaceau will continue to operate as a separate business entity from Coca-Cola North America, it will make use of its new parent company's supply chain, marketing power and foodservice.
The move points to Coca-Cola's expansion into non-carbonated beverages.
"We're committed to winning by reigniting growth in our core business of sparkling beverages while becoming the fastest-growing still beverage company in North America," said Kent.
Glaceau manufactures branded Vitaminwater, Smartwater, Fruitwater and Vitaminenergy - so-called lifestyle water and energy drinks.
As such, the acquisition represents Coca-Cola's faith that the future is bright for such drinks.
"It sharpens even further our existing focus on re-establishing sustainable growth in our home market, strengthening our system, and leveraging acquisition opportunities to gain speed and capabilities in key categories," said Kent.
The key categories in this case are energy drinks and functional water.
The beverage giant recently saw a difficult start into the energy drink category. Along with Nestlé, the company launched Enviga - a carbonated, green tea beverage that claims to burn more calories than it provides.
In February, Lawsuits were filed by consumer group Center for Science in the Public Interest (CSPI) against both Coca-Cola and Nestlé for claiming Enviga can help consumers burn off calories.