Coca-Cola is considering making an offer to the malted Brand Horlicks from UK pharmaceuticals company GlaxoSmithKline (GSK).
Any sale would likely include GSK’s 72.5% stake in India-listed GlaxoSmithKline Consumer Healthcare, which sells Horlicks in India, and is thought to be valued at £2.5 billion.
Founded in Chicago by British-born brothers James and William Horlick, the 145-year-old Horlicks brand now makes most of its sales in India, where the product is given as a breakfast drink to children.
GSK chief executive Emma Walmsley said: “This is an absolutely extraordinary brand, with more than a century of history, particularly in India [where it is] much loved.”
A move by Coca-Cola would see the company continue its efforts of offering healthier beverage options in India other than soft drinks. The firm will invest $1.7 billion in the country over the next five years as it creates a range of region-specific juice variants made from fruits native to India.
On the other hand, Coca-Cola Company and its bottlers will invest to boost customer loyalty, launch new packs, expand distribution, and increase manufacturing capacity in a bid to reach the landmark by 2020.
Source: FoodBev Media