The usually interesting and often well informed Bridget Carter in 'The Australian' (great paper) 'Data Room' section has a lengthy article that'll be in the paper tomorrow about PepsiCo possibly selling its local (i.e. Australian) snack food brands/products.
While she puts forwards various private equity firms as likely suitors, are these brands another possible acquisition for BGA?
Brands like Smith's Chips are household names, but some shoppers view them as unhealthy while many others love them. The third group claim to detest them but when at WOW or MTS' IGA supermarkets can't resist purchasing and later munching and crunching.
BGA needs time to swallow its LD & D acquisition.
I suspect it won't look to purchase these brands, probably perceiving them as unrelated to its core businesses and perhaps as detracting from BGA's 'healthy' image, but there are plenty of teenage and 20s males in particular who happily sink a Big M and then perhaps at another time delve into snacks like Twisties and Smith's Chips.
Your thoughts please?
BGA Price at posting:
$6.34 Sentiment: Hold Disclosure: Held
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