Mexico, June 1, 2016
The Coca-Cola Company (NYSE: KO), together with Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOFL, NYSE: KOF), announces that it has entered into an agreement with Unilever (LN: ULVR) to acquire Unilever’s AdeS soy-based beverage business for an aggregate amount of US$ 575 million.
Founded in 1988 in Argentina, AdeS is the leading soy-based beverages brand in Latin America. As the first major brand launched in the category, AdeS pioneered the development of the second largest global market for soy-based beverages. The AdeS brand currently has a presence in Brazil, Mexico, Argentina, Uruguay, Paraguay, Bolivia, Chile, and Colombia. During 2015, AdeS sold 56.2 million unit cases of beverages and generated net revenues of US$ 284 million.
“The acquisition of AdeS marks another milestone for the Coca-Cola system in providing increased choice of nutritious and delicious products to our consumers. AdeS is a leading brand in its category and we are very excited to add it to our stills portfolio. This continues the successful joint venture partnerships with our Latin American bottling partners and brings more innovative offerings to our markets,” said Brian Smith, President, Latin America Group, The Coca-Cola Company.
“AdeS complements and reinforces our non-carbonated beverage portfolio offer, providing our consumers with a wider range of choices. Together with our partner, The Coca-Cola Company, we will leverage the leading position of the AdeS brand, integrating it into our robust route-to-market model to drive value and further innovation on this new beverage platform,” said John Santa Maria, Chief Executive Officer of Coca-Cola FEMSA.
“This sale is a step in reshaping our portfolio in Latin America to deliver sustainable growth for Unilever and enables us to sharpen our focus. AdeS is an iconic brand and we believe that its potential can be fully realized within the Coca-Cola system”, said Miguel Kozuszok, EVP, Latin America, Unilever
This transaction has been approved by the Boards of Directors of The Coca-Cola Company, Coca-Cola FEMSA, and Unilever, and is subject to regulatory approvals and customary closing conditions. Post completion, it is intended that the AdeS business will become part of the non-carbonated beverage platforms that Coca-Cola FEMSA shares with The Coca- Cola Company in its franchise territories. In all other territories, The Coca-Cola Company will work with its local bottling partners to develop AdeS in those markets through similar non-carbonated beverage partnership arrangements.