0921 Wednesday 28 November 2018
After months of auctioning for the GSK subsidiary owned unit that includes Horlicks, Unilever look set to beat competition from the likes of Nestlé and Coca-Cola.
GlaxoSmithKline Consumer Healthcare, which is the Indian branch of GSK, value Horlicks at £4bn and a purchase by Unilever would mark a strategic move due to the malt based drinks popularity in the Indian market. In stark contrast to the UK market, Horlicks is viewed as a nutritional supplement in India and is often thought to be beneficial to children. Though it is marketed for its nutritional values throughout Asia, 90% of Horlicks sales are in the Indian market with sales of approximately £550m last year. Despite its popularity within India, Horlicks is regarded as the 56th globally ranked health-and-wellness beverage.
The sale of Horlicks by GSK would follow the sale of Lucozade for £1.3bn in 2013 suggesting that the company’s strategy to move away from drinks brands known for their nutritional value.
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