The M&A that shaped the drinks industry in 2025

Core Insights - The beverage industry is experiencing significant mergers and acquisitions, with notable deals including PepsiCo's acquisition of Poppi for $1.95 billion and Celsius Holdings' purchase of Alani Nutrition for $1.8 billion [2] - Diageo is actively offloading assets, including the sale of Cacique rum for $81 million and its stake in Guinness Ghana Breweries [5][10] - Emerging markets are becoming a focal point for major beverage companies, as seen in Coca-Cola HBC's acquisition of a majority stake in Coca-Cola Beverages Africa for $2.6 billion [20] Group 1: Major Acquisitions - PepsiCo announced the acquisition of Poppi, a prebiotic soda brand, for $1.95 billion, highlighting the growing market for healthier beverage options [2] - Keystone Brewing Group acquired North Brewing for £71 million ($88.3 million) as part of a strategic partnership [3] - Molson Coors Beverage Co. acquired an 8.5% stake in Fevertree Drinks, a UK-based tonic and mixer maker [4] Group 2: Industry Trends - The beverage industry is seeing a trend of portfolio pruning, with companies like Diageo and Campari selling off non-core assets to focus on brands with stronger growth potential [6][11] - Diageo's CFO indicated plans for substantial changes to its product portfolio, aiming to save around $500 million in costs over three years [10] - The trend of vertical integration is evident, as NewPrinces acquired Carrefour's operations in Italy to enhance production and distribution [12] Group 3: Emerging Markets Focus - Coca-Cola HBC's acquisition of Coca-Cola Beverages Africa will create the world's second-largest Coke bottler, expanding its operations into 14 new African markets [20] - The acquisition of Alani Nutrition by Celsius Holdings reflects a growing interest in energy drinks and functional beverages in the US market [2] - The sale of Diageo's business in Kenya to Asahi Group Holdings for $2.3 billion underscores the strategic focus on emerging markets [25]