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| Lucozade and Ribena up for sale | Lucozade and Ribena up for sale |
| (2 days later) | |
| Lucozade and Ribena have been put up for sale in a move that could value them at £1bn. | Lucozade and Ribena have been put up for sale in a move that could value them at £1bn. |
| The popular soft drink brands, which date back to 1927 and 1938 respectively, were put on the block by their current owner GlaxoSmithKline (GSK) on Wednesday. | The popular soft drink brands, which date back to 1927 and 1938 respectively, were put on the block by their current owner GlaxoSmithKline (GSK) on Wednesday. |
| Sir Andrew Witty, chief executive of the pharmaceuticals group, said it hoped to sell the brands to a global drinks giant. | Sir Andrew Witty, chief executive of the pharmaceuticals group, said it hoped to sell the brands to a global drinks giant. |
| "[We] concluded that the tremendous growth potential of these iconic brands, particularly outside the 'core' western markets, could be better leveraged by companies with existing category presence and infrastructure in these regions," he said in a statement. | "[We] concluded that the tremendous growth potential of these iconic brands, particularly outside the 'core' western markets, could be better leveraged by companies with existing category presence and infrastructure in these regions," he said in a statement. |
| Witty said GSK would "pursue the divestment of these brands" if it could achieve a high enough price. The company declined to state how much money it was hoping to sell the brands for, but analysts say they could fetch £1bn. | Witty said GSK would "pursue the divestment of these brands" if it could achieve a high enough price. The company declined to state how much money it was hoping to sell the brands for, but analysts say they could fetch £1bn. |
| Witty said the company had been approached by a significant number of parties, but declined to name any potential bidders. They are expected to include a host of global drinks brands and private equity firms. Suntory, the Japanese drinks group that bought Orangina in 2009, has previously been mentioned in connection with Lucozade and Ribena. A Suntory spokeswoman declined to comment. | Witty said the company had been approached by a significant number of parties, but declined to name any potential bidders. They are expected to include a host of global drinks brands and private equity firms. Suntory, the Japanese drinks group that bought Orangina in 2009, has previously been mentioned in connection with Lucozade and Ribena. A Suntory spokeswoman declined to comment. |
| Global sales of Ribena grew by 2% in the first three months of this year. But Lucozade sales dropped 2%, and sales in Europe fell by 7%. | Global sales of Ribena grew by 2% in the first three months of this year. But Lucozade sales dropped 2%, and sales in Europe fell by 7%. |
| Lucozade and Ribena were owned by Beecham prior to its merger with SmithKline in 1989. | |
| Lucozade, then known as Glucozade, was invented by William Owen in 1927, who was experimenting with methods to provide the sick with an easy energy source. | |
| Ribena was invented a decade later by Dr Vernon Charley, who was researching using pure fruit juices for milkshakes. It is named after the Latin for blackcurrant, ribes nigrum. | Ribena was invented a decade later by Dr Vernon Charley, who was researching using pure fruit juices for milkshakes. It is named after the Latin for blackcurrant, ribes nigrum. |
| During the second world war a lack of vitamin C in the UK led to a government decree and Ribena was given as a supplement in schools, hospitals and nursing homes. It made its first appearance on television screens in the 1950s and by the 1960s Ribena had become one of Britain's favourite blackcurrant drinks. | During the second world war a lack of vitamin C in the UK led to a government decree and Ribena was given as a supplement in schools, hospitals and nursing homes. It made its first appearance on television screens in the 1950s and by the 1960s Ribena had become one of Britain's favourite blackcurrant drinks. |
| On its website Ribena says: "Who knows what new and exciting things the future will hold for the Ribena brand!" | On its website Ribena says: "Who knows what new and exciting things the future will hold for the Ribena brand!" |
| • This article was amended on 26 April 2013. The original said Lucozade was invented by Thomas Beecham, when it was invented by William Owen. The original also said that Beecham merged with SmithKline in 2000. This merger was in 1989. These points have been corrected. |