Green, natural, ethical, organic, and healthy: The small brands owned by Big Consumer
- Pages: 27
- Published: November 2015
- Report Code: ML00019-050
There are many reasons why a corporation may wish to acquire a GNEOH brand. Firstly, the acquisition may allow a corporation to enter or expand in a new market. Such an acquisition may also improve the perception of the parent company; the GNEOH brand's credentials may start to rub off on the parent company. Finally, such an acquisition can act as a catalyst for change of business practices.
This case study looks at two important factors that prompt acquisitions of GNEOH brands: health and change.
Health has driven a number of food and beverage acquisitions in recent years and this case study looks at one: PepsiCo’s acquisition of Naked Juice.
The case study also looks at the positive business changes made by companies who have acquired GNEOH brands, including Clorox.
Reasons to buyWhy do corporations acquire GNEOH brands? Do both see a benefit?
How did Clorox improve its operations following the acquisition of Burt’s Bees?
Why did PepsiCo acquire Naked Juice? Where does the company see its future growth coming from?
Table of Contents
HEALTH AND CHANGE MAY PROMPT GNEOH ACQUISITIONS
The food and beverage market has consolidated
Companies acquire GNEOH brands for various sales-improving reasons
There have been a large number of acquisitions based on health in recent years
Such acquisitions can prompt positive change
Acquisitions are not always positive
Many brands have been accused of selling out
Such acquisitions walk a fine line
CLOROX BOUGHT BURT’S BEES IN 2007, WITH POSITIVE CHANGES BENEFITING BOTH
Burt’s Bees’ philosophy is ”˜The Greater Good’
Burt’s Bees sells predominantly natural goods and has witnessed strong growth
Burt's Bees has a strong brand image as a green company
2020 sustainability goal
Clorox is a diverse multinational
Clorox produces cleaning, household, lifestyle, and professional products
Clorox began to improve its business practices in the 2000s
The acquisition brought about mutual benefits
Clorox has benefited Burt's Bees
Burt's Bees has also had a significant effect on Clorox's operations
Clorox has been named a top reputable company
Burt's Bees has also seen good growth
PEPSICO ACQUIRED NAKED JUICE TO JOIN ITS OTHER GOOD-FOR-YOU BRANDS
Naked Juice makes juices and smoothies
PepsiCo wants to increase its healthy products
PepsiCo sells food and beverage products worldwide
Pepsi has grown its healthy brands
One of the brands PepsiCo acquired was Naked Juice
PepsiCo needs to anticipate consumer shifts in preferences
The acquisition of GNEOH brands can improve revenues for various reasons
Ask the analyst
List of Tables
List of Figures