Several leading soft drinks players, including global giants Coca-Cola and PepsiCo, have expressed an interest in buying US group Nantucket Nectars, the latest niche player to draw the attention of the major carbonate manufacturers.
Merrill Lynch has been trying to find a buyer for the juice manufacturer for the last two months. Ocean Spray, the cranberry producer which owns 80% of Nantucket Nectars, at first limited the sale to just Coca-Cola and PepsiCo, but has since decided to open the bidding to all interested parties.
Coca-Cola and PepsiCo are both still thought to be interested, while Cadbury Schweppes, Nestle and Campbell Soup are also considering bids. Kraft Foods reportedly looked at the company but has decided not to bid.
Nantucket Nectars, founded by Tom First and Tom Scott on Nantucket Island in Massachusetts, hasn't grown much in terms of revenues since it was bought by Ocean Spray in 1998 for an undisclosed sun. Sales remain below $100 million, and the company barely makes a profit.
This could be a potential sticking point, as many of the interested parties already have strong brands in the niche market where Nantucket Nectars competes. PepsiCo last year bought the Gatorade sports drink brand as part of its $14 billion acquisition of Quaker Oats, while Coca-Cola bought Odwalla for 4204 million.