Tata Consumer Products is all set to acquire PepsiCo's stake in NourishCo Beverages as the FMCG giant looks to expand its food and beverage portfolio.
Tata Consumer Products is all set to acquire PepsiCo’s stake in NourishCo Beverages as the FMCG giant looks to expand its food and beverage portfolio. Tata Consumer is set “to acquire entire stake of PepsiCo in NourishCo and transfer of rights over the “Gluco Plus/Gluco+” brand from PepsiCo,” the company said in a statement to the exchanges on Monday. NourishCo, which is a 50:50 joint venture between PepsiCo and Tata Consumer Products Ltd., makes non-carbonated, ready-to-drink beverages such as Himalayan mineral water, Tata Gluco Plus and Tata Water Plus.
The transaction, which will be completed by 30th June 2020, will cost Rs 29 crores to Tata Consumers as the company looks to bring “Gluco Plus/Gluco+” brands completely under its stable. The deal will help Tata Consumer to use its resources and capabilities to grow its value added liquid refreshment category. NourishCo had a turnover of Rs 181 crore in the last financial year 2019-20. For now, Tata Consumer is home to brands such as Tetley and Tata Tea. Tata group had last year announced consolidation of all its consumer products businesses with the branded food business of Tata Chemicals and became Tata Consumer Products. Tata Global Beverages and PepsiCo have been working in the past few months to revise the terms of the agreement with respect to NourishCo as they look to accommodate individual business expansion plans.
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“This decision has been made after extensive deliberation between the JV partners and we feel this will bring in greater focus to the Nourish-Co Business,” Sunil D’Souza, MD & CEO, Tata Consumer Products, said, adding that “The liquid beverages category has exciting growth potential and this move will help us strengthen and widen our presence in it.” NourishCo was set up by both PepsiCo and TCPL (former Tata Global Beverages Ltd.) in 2010.