Dr. Pepper Snapple Group announced earlier this week that it was buying Bai Brands for $1.7 billion in cash. Bai Brands is best-known for its lineup of antioxidant-based beverages.
Dr. Pepper Snapple may be the world’s third-largest beverage maker, but its business decisions still make waves across the industry. This is another example of a soft drink maker investing in products perceived to be healthier.
The purchase price includes a tax benefit of about $400 million on a net present value basis, reports Fortune.com. Prior to buying the company for $1.7 billion in cash, Dr. Pepper Snapple had already held a 3% stake in Bai.
Bai Brands is known for its lineup of beverages infused with antioxidants. The company infuses its drinks with plant-based ingredients, then adds antioxidants to enhance their nutritional value. Common ingredients used by the company include coffee fruit and white tea. Bai means “pure” in Mandarin Chinese.
Bai also uses no artificial sweeteners. The drinks have just 5 calories and 1 gram of sugar per serving.
Dr. Pepper Snapple Group isn’t the only beverage company feeling the heat. Across America, several cities – including Chicago and San Francisco – have voted for a new tax on sugary beverages to address various health problems related to sugar consumption. Dr. Pepper Snapple has taken a proactive approach to these new laws. Last year, they bought a minority stake in Bai and added it to their list of “Allied Brands”, labeled as healthy drink companies distributed throughout the Dr. Pepper Snapple network.
Bai Brands is based in Princeton, New Jersey. The company is expected to generate net sales of about $425 million in 2017 while adding $132 million to Dr. Pepper Snapple’s sales.
Types of Bai Brands Beverages
Bai Brands has dozens of unique flavors across its lineup, including everything from tea-based beverages to carbonated beverages.
Popular products offered by the company include their “Bai” lineup, consisting of Malawi Mango, Brasilia Blueberry, and Costa Rica Clementine. They also have product lineups titled Bubbles, Black, Antiwater, Cocofusions, and Supertea.
You can learn more about he company’s beverage options by visiting their official website here: http://www.drinkbai.com/
