Innocent turns to Coca-Cola to finance international expansion

Plenty of coverage in the press today about the announcement that the darling of Business Studies textbooks, Innocent Drinks, has sold a minority stake to Coca-Cola for £30million…

The sale of Innocent shares to Coca-Cola is reminiscent of a minority stake taken some years ago by McDonalds in Pret A Manger.  Lets hope that this latest investment goes more smoothly than the Pret one!

The Times takes a pretty balanced view in its reporting, explaining the strategic rationale for the deal and also pointing out the potential conflicts between Innocent’s ethical stance and that of its new US partner.

The Guardian takes a look at other niche/premium food brands that ended up selling themselves to much larger competitors.  Green & Blacks is now part of Cadbury’s.  Ben & Jerry’s is part of the Unilever brand portfolio.

Innocent management have also written an open letter to employees, suppliers, customers and other stakeholders.Well worth a read.

The shareholdings in Innocent post-deal are interesting.  The three original founders retain about 60% (20% each) with staff holding a combined 10% (valued at about £30m.  Coca-Cola have what is described as a small stake - probably around 10-20%, though the precise shareholding will be linked to business performance over the next year or two.

It is not just the finance that the share sale brings to the business.  Coca-Cola will bring substantial strategic benefits to Innocent, particularly as it seeks to exploit Coca-Cola’s distribution network overseas.

This is perhaps an invitable and undoubtedly interesting next stage in the development of Innocent.  It should be fascinating to see how the Coca-Cola investment enables the smoothie-maker to accelerate its growth after a couple of years when sales have matured in the face of market saturation and intense competition in the UK.

Revision Presentation - Marketing and Competitiveness [17 May 2012]
Revision Quiz - Sources of Finance for a Startup [12 May 2012]
Revision Presentation - Porters Five Forces [5 Apr 2012]
Starbucks acquisition provides the base for entry into the juice bar market [25 Mar 2012]
UK manufacturing - GlaxoSmithKline invests in 1,000 new jobs [22 Mar 2012]
Buying-in to the Facebook culture [5 Feb 2012]
Investment in People - Google and Human Capital [26 Dec 2011]
Unilever hit by rising costs [6 Nov 2011]
Behind the scenes of an Innocent advert [30 Oct 2011]
Tesco and Retrenchment [31 Aug 2011]
Samsung seeks a ban on Apple products [30 Jun 2011]
Business investment: the UK corporate cash pile [15 Jun 2011]
Strategy Video - Innovation through technology at Fern Howard [10 Jun 2011]
Changing demand in the market for live music [16 May 2011]
Jaguar goes for NPD investment with £5bn plan [10 May 2011]
Whitbread goes for organic growth [2 May 2011]
Life in the chocolate factory - automation, productivity, motivation and culture [24 Apr 2011]
The UK Economy - Business Investment [14 Mar 2011]
CSR - BBC One Planet on Coca-Cola & Sustainability [24 Feb 2011]
Is Facebook worth $50bn? [4 Jan 2011]
BUSS1 Revision Quiz - Sources of Finance for a Startup [13 Dec 2010]
Advent business (2) - online marketing [2 Dec 2010]
Revision Games - Sources of Finance Definitions [1 Nov 2010]
Businesses argue the case for greater investment in public infrastructure [16 Oct 2010]
37 Ways for a Business to be More Competitive [24 Aug 2010]
Did you know?  Private and Public Companies [27 Jul 2010]
Betting firm cries fowl and turns to offshoring [26 Jul 2010]
Farmers v Supermarkets - the battle continues [19 Jul 2010]
Lesson Worksheet - Financing Business Growth [16 Jul 2010]
Business survival strategies for independent bookshops [14 Jun 2010]
Supermarkets set for a new price war? [13 Jun 2010]
Forget vouchers or stamps - give your customers some shares… [9 Jun 2010]
BUSS2 Revision - Effective Marketing [16 May 2010]
Book wars! [5 May 2010]
Corus chief calls for more government funds for the economy [8 Apr 2010]
Recession Survival Strategies Cost UK SMEs £16bn [31 Mar 2010]
Marketing in a recession: more focus on brand advertising and product enhancements [20 Feb 2010]
Revision Presentation - Balance Sheet Basics [30 Jan 2010]
Source of finance - SMEs turn to the private alternatives to banks [27 Jan 2010]
Revision Presentation - New Businesses and Competition [1 Jan 2010]
Revision Presentation - Raising Finance for a New Business [30 Dec 2009]
Video case study - competition drives down prices in India [28 Dec 2009]
Breakfast for $1 tests price elasticity of demand [12 Dec 2009]
Outdoor Ice-skating heads firmly down the product life cycle [3 Dec 2009]
A tale of two bakers [16 Nov 2009]
Eurostar’s competitive forces [13 Nov 2009]
Innocent Drinks - Teaching Accounts Exercise [9 Nov 2009]
Buffett Bets on the Railways [5 Nov 2009]
Competition regulator blocks Friends Reunited sale [3 Nov 2009]
Q&A - What is globalisation? [27 Oct 2009]
Q&A - What are the main causes of unemployment? [27 Oct 2009]
Napster - Trying to compete, or getting desperate? [9 Oct 2009]
Meet the Young Entrepreneur of the Year 2009 [30 Sep 2009]
The lights go out for the nightclub market [26 Sep 2009]
Can you spot the next ‘disruptive technology’? [7 Sep 2009]
How to beat the tourism competition?  Be the “steepest” [31 Aug 2009]
A dramatic fall in business investment [27 Aug 2009]
Strategic business decision-making - Network Rail [26 Aug 2009]
Plastic car is a blast from the past [25 Aug 2009]
BA cuts out the cost of short-haul meals [29 Jul 2009]
Business angels take flight - just when small businesses need them [12 Jul 2009]
Microsoft and Google compete head-to-head [9 Jul 2009]
Coffee Republic struggles with the daily grind [6 Jul 2009]
What makes a profitable menu? [6 Jul 2009]
Spare capacity prompts a fall in business investment [4 Jul 2009]
U2 on Tour - Investment appraisal and capacity utilisation rolled into one! [2 Jul 2009]
Q&A - Outline the main costs and benefits of inflation [1 Jul 2009]
Q&A - Explain the role of corporate objectives in business strategy [1 Jul 2009]
Building a tourist facility on the top of a mountain [12 Jun 2009]
Britain’s Got Talent - Extending the Brand [1 Jun 2009]
Q&A - What is a sales forecast? [31 May 2009]
Q&A - Should a start-up raise investment from outside investors? [27 May 2009]
Q&A - What are the main things to consider when obtaining finance for a start-up? [26 May 2009]
Protecting a business idea - the irn-bru way [26 May 2009]
Q&A - How is profit used by a business? [26 May 2009]
Investment appraisal in the rail industry - Branson wants to take the long-term view [22 May 2009]
Sources of finance: PLCs turn to their shareholders [11 May 2009]
Q&A -  What is share capital [2 May 2009]
Q&A - What is a bank loan? [1 May 2009]
Video case study - Wind turbine production is stalled [1 May 2009]
Innocent Drinks & Coca-Cola - Interview with Richard Reed [13 Apr 2009]
OCR 2880 (ACE) - Why build a railway line when a bus will do? [11 Apr 2009]
Viability of wind farms poses a “sources of finance” challenge [9 Apr 2009]
Q&A - What is the difference between long-term, medium-term and short-term finance? [1 Apr 2009]
Q&A - What is profit and why is it important? [1 Mar 2009]
Q&A - What factors affect the demand for a product? [1 Mar 2009]
Q&A - What are the advantages to a start-up of being a franchise? [1 Mar 2009]
Q&A - What are the financial objectives of a new business? [1 Mar 2009]
Q&A - What is meant by adding value [1 Mar 2009]
Monopoly - irresponsible banking rears its ugly head [20 Feb 2009]
Blue Peter - End of its Product Life Cycle? [10 Feb 2009]
Interactive investment appraisal simulator [9 Feb 2009]
Video case study - Living Salads [9 Feb 2009]
The train feels the strain [2 Feb 2009]
A Bigger Competitor for Specsavers [29 Jan 2009]
Not even the Dragons are immune from the recession [26 Jan 2009]
Retailer Survivors Like a Deep Recession [7 Jan 2009]
Valuing Apprentices [29 Dec 2008]
Measuring consumer spending and retail activity on the high street [22 Dec 2008]
A tale of two retailers with contrasting fortunes in the slump [19 Dec 2008]

BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!