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Actionable news in SPU: SkyPeople Fruit Juice, Inc.,

SkyPeople/Coca-Cola Buyout Thesis In Play

Summary

Coca-Cola announced its intention on April 17th to acquire CuliangWang, a plant based drink maker in China for an Enterprise Value of $400.5 million.

This puts SkyPeople Fruit Juice in play as part of a grand thesis that Coca-Cola's focus is on healthy branded Chinese drink makers.

Coca-Cola attempted to acquire HuiYuan, the largest branded fruit juice maker in China, 6 years ago.

Update to Previous Articles on SkyPeople Fruit Juice:

Coca-Cola (NYSE:KO) just announced (April 17th) its intentions to acquire a segment of Culiangwang (which means King of Grains in Chinese) for a total Enterprise Value of $400.5 million.

The top products for Culiangwang are healthy drinks such as red bean, green bean, and walnut variants. The top healthy fruit juice lines that SkyPeople (NASDAQ:SPU) offers are Kiwi, Pear, Peach, Mulberry, Apple, and soon to be Orange. This is good news because none of the products offered by Culiangwang overlap with SkyPeople's product lines. Furthermore, this means that Coca-Cola is looking for a diversified portfolio of non-carbonated, healthy drink products.

As I wrote back in March and beginning of April in my previous articles and in the comment sections here and here, my thesis is coming to fruition. Coca-Cola has major plans of expanding into the fastest growing market in the world for fresh fruit juice and opening premium lines under the Coke label through Chinese acquired brands...


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