Britvic Acquires Jimmy’s Iced Coffee in the United Kingdom

Britvic, a publicly listed British multinational soft drinks producer and distributor, acquired Jimmy’s Iced Coffee, a producer of iced coffee drinks, on July 27, 2023. Both companies are based in the United Kingdom. Britvic made the acquisition to expand into the fast-growing iced coffee drinks segment.

Transaction Summary

The Facts of the Acquisition

  • Target: Jimmy’s Iced Coffee produces iced coffee drinks and is the fastest-growing ready-to-drink iced coffee brand in the United Kingdom.
  • Acquirer: Britvic is a publicly listed British producer and distributor of soft drinks, based in the United Kingdom. It has been producing soft drinks under its own name and several other brands since 1845. It has the license to distribute PepsiCo products in the United Kingdom.

Our Take on the Acquisition

The acquisition of Jimmy’s Iced Coffee (target) sees Britvic (acquirer), a soft drinks producer and distributor, expand into the iced coffee beverage segment. The UK ready-to-drink iced coffee category is both large and fast growing with annual retail sales of GBP £280 million (USD $359 million). Britvic intends to accelerate the growth of Jimmy’s Iced Coffee through Britvic’s existing customer relationships and distribution network. Additionally, it intends to use its supply chain expertise and procurement capability to increase the cost efficiency of the target business.

The Transaction

Date:July 27, 2023
Purpose: To expand the product portfolio.
Acquirer’s Statement:Simon Litherland, Britvic CEO – “We are thrilled to welcome Jimmy’s Iced Coffee to our portfolio of much-loved Britvic brands. The focus on innovation, great taste with fewer calories, and fully recyclable packaging makes Jimmy’s a perfect fit for Britvic. We have a long track-record of acquiring and developing brands, and I am confident in our ability to quickly expand our position in the iced coffee category – which is an exciting and fast-growing market segment.”

Target/Seller: Jimmy’s Iced Coffee

Company Information

Target:Jimmy’s Iced Coffee
Industry: Beverage Manufacturing
Employees:38 (Self-published on LinkedIn)
Locations:Head Office and Factory: Unit 1 Beaver Industrial Estate, 8 Airfield Road, Christchurch, Dorset, United Kingdom

Product Information 

Products:Caramel – Made with semi-skimmed milk, arabica coffee, and natural flavoring
Mocha – Made with semi-skimmed milk, arabica coffee, and chocolate powder
Oat – Made with oat milk, arabica coffee, and vanilla flavoring
Original – Made with semi-skimmed milk and arabica coffee
Strong – Made with semi-skimmed milk and strong arabica coffee
Market Reach:United Kingdom

Financial Information 

Revenue:GBP £17 million (USD $21.8 million) – (Source: Britvic)
Revenue per Employee:GBP £447,368 (USD $573,684) (i.e., GBP £17 million / 38 employees = GBP £447,368 – estimated based on the self-published number of employees and the revenue from Britvic)

Did You Know?

Revenue in the UK ready-to-drink coffee market in 2023 amounts to GBP £86.14 million (USD $110 million), according to Statistica. It’s projected to grow at a compound annual growth rate (CAGR) of 7.36% between 2023 and 2027. In the U.S. market, revenue amounts to USD $11.18 billion (GBP £8.76 billion) and is projected to grow at a CAGR of 5.95% by 2027.

Target/Seller Overview: Jimmy’s Iced Coffee

Jimmy’s Iced Coffee is the fastest-growing ready-to-drink iced coffee brand in the United Kingdom. Started in 2010 by Jim Cregan and his sister Suzie Owen, the company sells iced coffee in unique and differentiated packaging through distributors and online in the United Kingdom.

The company is a Certified B Corporation, a private certification of for-profit companies of their social and environmental performance. Jimmy’s strives to make a positive impact on the planet and the communities it touches. Other food and beverage Certified B Corporation companies include BrewDog in the United Kingdom, Ben & Jerry’s in the United States, and Fatso in Canada.

Jimmy’s Iced Coffee comes in a variety of flavors.

Buyer/Acquirer: Britvic

Company Information

Industry: Beverages Manufacturing and Distribution
Type:Publicly listed company
Employees:4,346 (Source: MacroTrends, a research platform)
Locations:Head Office: Breakspear Park, Breakspear Way, Hemel Hempstead, United Kingdom

Regional Office #1: Av. Paulista, 1.842 – Bela Vista, São Paulo, Brazil
Factory #1: Rodovia, BR 304, KM 55,2 Aracati, Ceara, Brazil
Factory #2: Av. Hugo Alessi, Araguari, Minas Gerais, Brazil

Regional Office #2: 482 Av. Ambroise Croizat, Crolles, France

Regional Office #3: Kylemore Park W, Kylemore, Dublin, Ireland

Regional Office #4: 2.08-2.13, Spaces Vijzel, Vijzelstraat 68-78, 1017 HL, Amsterdam, Netherlands

United Kingdom
Factory #3: Aventine Way, Glebe Farm Industrial Estate, Rugby, United Kingdom
Factory #4: 9 Roding Road, London Industrial Park, Beckton, London, United Kingdom
Factory #5: Swinnow Lane Industrial Estate, Bramley, Leeds, United Kingdom

United States
Regional Office #5: WeWork Wynwood Garage, Ste 08-127, 360 NW 27th St, Miami, Florida, United States

Product Information 

Products:Carbonated Soft Drinks – Sweet, non-alcoholic drinks mixed with carbonated water
Dilutes – Concentrate syrup used in beverage making, usually fruit flavored
Fruit Juice – Juice squeezed out a variety of fruits
PepsiCo – Pepsi, Mountain Dew, Gatorade, 7UP, Lipton Iced Tea, and other PepsiCo brands
Sports Drinks – Drink rich in electrolytes and carbohydrates
Water – Variety of sparkling and mineral waters
Market Reach:More than 100 countries on six continents

Financial Information 

Market Cap:GBP £2.2 billion (USD $2.8 billion)
Revenue:GBP £1.6 billion (USD $2.1 billion)
Revenue per Employee:GBP £368,155 (USD $483,203) (i.e., GBP £1.6 billion / 4,346 employees = GBP £368,155 – estimated based on the number of employees from MacroTrends and revenue from the company’s annual report)
EBITDA: GBP £252.6 million (USD $331.5 million)
P/E Ratio:16.6
EV/EBITDA Ratio:8.9

Buyer/Acquirer Overview: Britvic

Britvic is a publicly listed British producer of soft drinks based in Hemel Hempstead, England. Founded in 1845 as the British Vitamin Products Company, it produces soft drinks, fruit juices, and water under its own name and several other brands. It also owns the distribution license to PepsiCo products in the United Kingdom. Most of Britvic’s operations are in the United Kingdom, and it exports to more than 100 countries.

Britvic sells a variety of fruit juices, soft drinks, and water.
Britvic operates factories in the United Kingdom and Brazil.

Previous Acquisitions by Britvic

  • Plenish (2021) – A plant-based drinks brand offering raw, organic juices, based in London, United Kingdom.
  • Bela Ischia Alimentos Ltda (2017) – A producer of juices, liquid concentrates, and powder concentrates, based in Brazil. The price was R$218 million (GBP £54.5 million, USD $66 million).
  • Empresa Brasileira de Bebidas e Alimentos SA (2015) – A soft drinks company based in Brazil. The price was R$580 million (GBP £120.8 million, USD $188 million).
  • Fruité Entreprises (2010) – A manufacturer and distributor of fruit juices and yogurt, based in France. The price was €237 million (GBP £203 million, USD $293.5 million).

Would you like more information on this transaction?

If there is any additional category of information you would like to see us include on future acquisition announcements, please contact us.