Britvic plc has recently acquired Jimmy’s Iced Coffee, the fastest-growing ready-to-drink (RTD) iced coffee brand in the segment, founded in 2010. In the year leading up to June 2023, Jimmy’s Iced Coffee generated £17 million in retail sales value, representing a 43% increase from the previous year. The UK ready-to-drink iced coffee category is a large and fast-growing market, with a retail sales value of £280 million last year, showing a 15.3% annual increase.
Simon Litherland, CEO of Britvic, expressed his excitement about integrating Jimmy’s Iced Coffee into Britvic’s portfolio of beloved brands. He highlighted how Jimmy’s aligns perfectly with Britvic’s focus on innovation, great taste with fewer calories, and fully recyclable packaging. Litherland also emphasized Britvic’s track-record of acquiring and developing brands and expressed confidence in their ability to expand their position in the exciting and fast-growing iced coffee market segment.
Jim Cregan, Co-founder of Jimmy’s Iced Coffee, shared his delight about the acquisition. He reflected on the twelve years of hard work he and his sister put into building the business to what it is today. Cregan expressed gratitude towards Britvic for the opportunity to take Jimmy’s Iced Coffee to new heights and is excited about the brand’s future growth and recognition.
With over 10,000 distribution points, Jimmy’s Iced Coffee has become the fastest-growing RTD iced coffee brand in the UK. Its popularity is evident as a Jimmy’s iced coffee is sold every 2.5 seconds 24/7. The brand, started by Jim Cregan and Suzie Owen, first hit the market in 2011 and has since become highly respected for caring about people and the planet. It has even been certified as a B Corporation.
Britvic aims to accelerate Jimmy’s further growth by leveraging its market-leading customer relationships to drive new listings and increase distribution. Additionally, Britvic plans to enhance cost efficiency through its supply chain expertise and procurement capability. Jimmy’s Iced Coffee perfectly aligns with Britvic’s Healthier People, Healthier Planet pillar, offering lower calorie options, fully recyclable packaging, and compliance with HFSS legislation.
Jim and Suzie, the founders of Jimmy’s, will remain involved in the business as ambassadors for the brand. They will support the transition and provide valuable advice on brand direction and future innovation, ensuring that Jimmy’s core values and ethos continue to drive the brand’s success.
The acquisition will be financed through existing internal resources and external debt facilities.
Brazilian Acquisition
In addition to acquiring Jimmy’s Iced Coffee, Britvic has also announced the acquisition of the Extra Power energy drink brand in Brazil from GlobalBev. This move expands Britvic’s presence in Brazil and aligns with its strategy to accelerate and diversify its operations in the country.
Extra Power currently holds a 42% market share in core regions near Brasilia, providing access to the fast-growing, high-margin energy category. The acquisition also includes a modern, efficient warehouse in Brasilia, which will enhance Britvic’s supply chain efficiency across its wider portfolio and improve its route to market in the Centre-West region of Brazil. In the year leading up to December 2022, the acquired portfolio generated R$118 million in net sales, representing a 26% growth from the previous year.
This acquisition enables Britvic to establish a significant presence in the Centre-West region (Distrito Federal & Goias), allowing the opportunity to scale its existing brands in an under-indexed region and expand the acquired brand in Britvic’s existing footprint.
Britvic first entered the Brazilian market in 2015 with the acquisition of Ebba, followed by the acquisition of Bela Ischia in 2017. Since then, Britvic has successfully developed fruit favorites such as Maguary, Dafruta, and Bela Ischia, establishing them as strong national brands known for their innovative offerings.