Coke Takes Swig of Glacéau

Soft drink giant tries to boost its offerings with $4.1B VitaminWater buy
By J. Kelman,  Newser User
Posted May 25, 2007 9:12 AM CDT
Bottles of Vitaminwater line a convenience store shelf on Friday, May 25, 2007 in New York. The Coca-Cola Co., which has been looking to expand its water and energy drink portfolio, said Friday it has...   (Associated Press)
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(Newser) – Coca-Cola is adding some fizz to its line of non-soda offerings, acquiring the maker of Glacéau VitaminWater today in its biggest purchase ever. The $4.1 billion purchase of Energy Brands will give Coke a strong foothold in the market for non-carbonated products and help it close the gap with archrival Pepsi.

Glacéau commands nearly one-third of the "enhanced" water market with its candy-colored VitaminWater and electrolyte-filled SmartWater. That makes it attractive to Coke, which has struggled to expand beyond the soda products that account for 80% of its sales. As soda loses market share, Coke has sought a product to help it stay current. One analyst said simply: "Coke needs Glacéau.'' (Read more Coca Cola stories.)