Coke Pays $1 Billion for Share of Saudi Drinks Firm Aujan

Dec. 14, 2011
The deal excludes Aujan's manufacturing and distribution in Iran.

Coca-Cola said Wednesday it would pay $980 million for a stake in Saudi soft drinks producer Aujan Industries, expanding its footprint the fast-growing Gulf non-alcoholic beverage sector.

Coke will take a 50% share of Aujan, which produces juices under the Rani brand and Barbican, one of the leading brands in the non-alcoholic beer market.

It is also licensed to distribute the British cordial Vimto.

"Today's announcement marks the fruition of extensive dialogue between Aujan and The Coca-Cola Co., which has resulted in a soundly based framework for the commercial development of the business," said Aujan chairman Sheikh Adel Aujan.

Coke said the investment is part of some $5 billion it plans to plow into the Middle East and North Africa region over the next 10 years.

"The Middle East is a high-growth region with some of the highest rates of non-alcoholic ready-to-drink per capita consumption," said Ahmet Bozer, who lead's Coke's division in the region.

"In addition to their great brands, we are investing in Aujan because it is a well-run, successful business."

The deal notably excludes Aujan's manufacturing and distribution in Iran, which increasingly faces U.S. and European sanctions for what is believed to be a push to develop nuclear weapons.

Copyright Agence France-Presse, 2011

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2017. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!