FRANCE – Royal Unibrew, a Denmark-based beverage company, has expanded into the energy drinks category with the acquisition of MC Energy, the owner of the Crazy Tiger brand for approximately €82 million (US$97.13 million).
Crazy Tiger holds around 10% volume share in the fast-growing energy drinks market, is projected to continue growing at a double-digit growth rate in the coming years.
The acquisition announcement comes less than a week after the Danish beverage company had announced that it had entered exclusive negotiations to acquire MC Energy.
According to Royal Unibrew, the acquisition will see it add a new category to its French business, which is currently based on its Lorina lemonade brand, as it plans to grow its existing capabilities in the country.
The Danish firm also sees strong growth opportunities for the category across other markets and the addition of Crazy Tiger better positions it to take advantage of these opportunities.
“We are very pleased that we have secured the ownership of Crazy Tiger in France as we see significant growth opportunities in the energy drink category across geographies,” said Lars Jensen, CEO of Royal Unibrew
“The acquisition of an energy drink company with a solid market position in France supports our strategy and is the next step in developing our French business into a multi-niche business model.”
Royal Unibrew’s entry is timely as Europe is one of the major energy drinks markets in the world, according to Research and Markets.
The market research firm also notes that the European energy drink market is expected to witness market growth of 7.9% CAGR during the forecast period 2018 – 2024.
Analysts at Mordor Intelligence opine that Europe will continue being one of the fastest-growing markets for energy drinks as consumers in the market are looking for healthier beverage options.
The larger inclination of the younger population towards the consumption of energy drinks and the improving living standards of the people in the region will also continue driving the energy drinks market in Europe, according to Mordor Intelligence.
Royal Unibrew says it intends to invest in Crazy Tiger, with plans to further product innovation, create a more premium brand and attract new consumers and occasions.
Last week, Royal Unibrew also entered into an agreement to acquire Solera Beverage Group – an importer and distributor of beverages across Norway, Sweden, and Finland – for an enterprise value of DKK 770 million (approximately €103 million).
The deal will see Royal Unibrew gain access to international imported wine, beer, and soft drinks, in addition to a strong Nordic platform.
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