Beanz means mergers and acquisitions

The deal has focused attention on the likelihood of further mergers and acquisitions in the food and drink sector over the coming year as canny investors, such as Buffett's Berkshire Hathaway vehicle, seek to release the untapped potential of ‘safe’ food industry stocks and their well-established brands.

There has been speculation that Pepsico would split its drinks and food operations. Meanwhile, industry commentators have also reflected on the likely responses of other major players to the Heinz announcement, such as Kraft and General Mills.

2,700 UK staff​

The implications for Heinz’s 2,700 UK staff have yet to emerge. Union bosses, led by Unite, however, have called for an urgent meeting with the company’s new owners, hoping to get some reassurance about the security of jobs there.

Heinz UK’s main food manufacturing facility, which is said to be Europe’s largest food factory, is based in Kitt Green, near Wigan. It turns out more than 1bn cans of beans every year. Heinz also has manufacturing sites in Telford, Worcester, Westwick, Kendal and Dundalk in Ireland.

Over the month, speculation rose that a sell-off of pharmaceuticals group GlaxoSmithKline (GSK) Lucozade and Ribena brands for estimated £766M was the most likely outcome of the strategic review the company announced of its drinks business.

Sales fall ​

GSK chief executive Andrew Whitty announced the review as sales for the group overall fell by 1% to £26.4bn in 2012.

GSK is expected to make a decision on the future of these drinks brands by the middle of the year. The Lucozade and Ribena brands are said to contribute a large part of the company’s nutrition business sales, which were worth £1bn last year.

Life in the UK soft drinks arena was also somewhat muddied over the past month, with news that the £1.4bn Britvic/ AG Barr merger had been referred to the Competition Commission. Analysts suggested that the GSK news might cause AG Barr to reconsider the Britvic deal.