Anheuser-Busch Blends Sparkling Juice, Energy Drinks Into Beer Portfolio With Hiball Buyout
Anheuser Busch Inbev NV (ADR) (NYSE: BUD) is going soft on us.
The hard beverage company began expanding its portfolio recently to include Hiball’s non-alcoholic assortment of energy drinks, sparkling juices and sparkling waters.
"The combination of Hiball's category-leading organic energy drinks and Alta Palla's organic sparkling juices and sparkling waters together with our network and operational know-how will create tremendous growth opportunities for these brands," Joao Castro Neves, president and CEO of Anheuser-Busch North America, said in a press release. "Our goal is to deliver Hiball products to new markets, while preserving their culture and brand identities."
While it may be trailblazing in the narrow-portfolio alcohol industry, it’s not the only specialty beverage company exploring categories outside its niche.
National Beverage Corp. (NASDAQ: FIZZ) led the soda industry into the carbonated water space with its debut of LaCroix. The firm boasted great success in its model and ━ amid the legislative war on sugar, consumer migration toward water and inspiring gains for energy drink companies like Monster Beverage Corporation (NASDAQ: MNST) ━ inspired The Coca-Cola Co (NYSE: KO), PepsiCo, Inc. (NYSE: PEP) and Dr Pepper Snapple Group Inc. (NYSE: DPS) to follow suit.
Soon, PepsiCo built off its Gatorade and Propel Water lines with LIFEWTR, Naked Juice and Pure Leaf, while Coca-Cola emphasized its Minute Maid, Smartwater and Zico coconut water brands and bought into Suja Juice.
Even as the “hard” beverage players diffuse into the juice and water scene, some speculate whether soft drink firms will take the opposite approach and embrace alcoholic product lines.
Regardless of the direction individual companies take, the trend appears to favor rapid portfolio expansion, giving investors exposure to a diverse array of specialty drinks and buffering them against capricious consumer demands.
Related Links:
Casualties Of The Sugar Wars: Pepsi Announces Job Cuts As Philly Soda Tax Hits Sales
National Beverage: A Great Story, But It’s Run Too Far
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