GSK considers offloading Lucozade and Ribena brands

GlaxoSmithKline (GSK) is launching a strategic review of its Lucozade and Ribena drinks brands, that could result in the pair being sold off, as part of a wider streamlining of its consumer brands.

Lucozade

The company, which makes the majority of its revenue from pharmaceutical products, says it is evaluating all strategic options for the “iconic brands” to ensure their continued growth.

It could choose to increase investment in the brands in certain areas of the world, find a partner or divest the products. A decision will be taken by the summer.

Chief executive Andrew Witty told news agencies there had been immediate interest from investment banks after announcing the review yesterday (6 February).

Lucozade Sport was the eighth biggest soft drinks brand in 2011, with sales of £117.9m, according to Nielsen Scantrack. Ribena did not feature in the top 10.

The Lucozade Sport brand launched a £1m marketing campaign last month, featuring rugby ambassadors from the England, Scotland and Wales national teams to continue to communicate its “hydrates and fuels you better than water message”.

The announcement of the strategic review coincided with the drug maker reporting a 35 per cent year on year decline in profit to £839m in the quarter to 31 December. Sales fell 3 per cent to £6.8bn.

GSK has also started a new programme to restructure its European operations, drug manufacturing and research in a bid to save about £1bn annually by 2016.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here