Coca-Cola makes approach to buy stake in Innocent

by James Quilter , Brand Republic 09-Mar-09, 09:20

LONDON - Coca-Cola is considering purchasing a stake in ethical smoothie brand Innocent, which is on the hunt for investors to fund its international expansion plans.

According to reports Innocent is in talks with a number of interested parties, including Coca-Cola and a number of private equity houses, who are interested in buying a minority stake in the company.

At first sight a link-up between Coca-Cola and a brand with Innocent's ethical credentials looks improbable. However Coca-Cola will be buoyed by a recent study by the Carbon Trust, which looked at the effect fizzy drink production has on the environment.

The Carbon Trust added up how much carbon dioxide is created by Coca-Cola when it makes, packages, transports, chills and disposes of its products. It found a 330ml can was responsible for 170g of CO2, while Innocent's 250ml bottle of mango and passionfruit flavoured smoothie generated 209g of CO2.

However in response Innocent co-founder Richard Reed said it was unfair to compare the two products as Coke is mostly made of water.

Founded in 1998, Innocent announced plans this year to expand its range to include non-smoothie products and reposition itself as 'The Earth’s Favourite Food Company'.

The move followed 2008's dip in performance with sales falling 20% from £134.1m to £107m. Late last year it launched Veg Pots -- pots of chopped vegetables and sauce -- it's first move outside of its core smoothie business.