measure and monitor the processes and report results ... - Refresco.de

The economic recession of the past few years has to date had
little impact on Refresco’s overall business, which is still very
much in balance and growing steadily. For Refresco 2010 was
an exciting year. It started with strong results in the first half
year. The second half was much more difficult because of
the sudden and extreme price rises for raw materials and
packaging materials.
As the market leader, Refresco has been able to improve its
relative position. Leveraging on our scale and being present
in the whole portfolio of soft drinks and juices has helped us
to deliver in 2010 and to prepare for 2011. Despite the trend in
the overall soft drinks and fruit juices market of a stabilizing
private label share in 2010, we were able to increase our share
of private label in our markets. Meanwhile, the heavy price
promotions of A­brands allowed us to increase our revenue
with the A­brands on a like­for­like basis.
Operational
Expanding our presence
2010 offered Refresco new opportunities, allowing us to pursue
our acquisition strategy as we intended. In March, the owners
of Refresco and 3i, an international private equity company,
announced that 3i had acquired newly issued Refresco shares
representing a 20% stake in the share capital of Refresco.
The total value of the capital commitment amounted to
Euro 84 million of which € 37 million is already injected.
The existing shareholders and the management of Refresco
maintained their shareholdings and fully supported the
transaction. In September, Refresco International B.V.
(100% subsidiary of Refresco Group), signed a debt financing
agreement involving new senior facilities worth € 140 million.
The maximum tenor of the facilities is four years.
Both transactions were meant to leverage Refresco’s growth
potential and enabled Refresco to realize its near­term growth
ambitions. Pursuing its Buy & Build strategy, Refresco has
been able to further extend its presence in the European
market through acquisitions as well as organic growth.
In September 2010 we acquired Soft Drinks International (SDI),
a German producer of soft drinks and water. SDI is a strong
regional producer, primarily active in the German market and
the Benelux countries, with production facilities in Erftstadt
(Germany) and Heerlen (the Netherlands). SDI’s products are
also exported to other European countries. SDI focuses solely
on the private label segment. The takeover gives Refresco a
significant presence in the growing German market for
carbonated soft drinks (CSDs). It allows Refresco to further
expand its product range – which in Germany consisted
primarily of fruit juices – with CSDs, and enables Refresco
Germany to offer a total product portfolio to its customers.
The acquisition will help Refresco to optimize its production
processes and improve its competitive position in Germany.
Refresco is now one of the top three manufacturers of soft
drinks and fruit juices in Germany. The acquisition will also
reinforce Refresco’s position in the private label market.
Completing our product portfolio
Refresco has increasingly moved from being mainly a juice
producer to being a producer of all non­alcoholic beverages.
This shift was most clearly visible in the past two years.
Although juices still account for a large share of the portfolio,
the acquisition of SDI in 2010 has increased the share of
carbonated soft drinks (CSDs) and has considerably
strengthened the portfolio mix. in line with the overall
Refresco strategy. The acquisition of SDI also gives Refresco
the opportunity to increase its private label propositions
towards international retailers.
page _ 24 / 25