Friday 22 September 2017

GSK drops iconic brands for €1.2bn

GLAXOSmithKline's long-awaited sale of its Lucozade and Ribena drinks brands is edging towards resolution.

Japan's Suntory Beverage and Food is on the brink of buying the brands for more than €1.2bn. GSK – one of the world's biggest drugmakers – announced plans in April to sell Lucozade and Ribena, which are big sellers in Ireland and Britain but weak in the emerging markets. Around 90pc of all the blackcurrants farmed in Britain and Ireland end up in the famous purple drink.

DIXONS SCRAPS ITS WEB UNIT PIXMANIA

ELECTRONICS chain Dixons will close its online unit Pixmania and has agreed to sell its Turkish operations to cut unprofitable businesses and enable it to focus on Irish and UK growth.

Shares in the company rose as much as 10pc after Dixons said it got an irrevocable offer for Pixmania from Germany's Mutares which involves the UK company paying €69m in cash to support the business. Sales at stores in Ireland and the UK rose at least 6pc in the three months to July.

MCDONALD'S HIKES ITS 'DOLLAR' MENU

McDONALD'S famed dollar menu is primed for inflation. The burger chain is testing a new version, dubbed Dollar Menu and More, that includes items selling for as much as $5 (€3.80).

McDonald's earnings have trailed analysts' estimates for the past two quarters amid shaky consumer confidence and more competition from rivals introducing new food. The chain is also facing a franchisee revolt. One point of tension is the less and less profitable Dollar Menu, in the face of rising beef prices after last year's drought.

LEGO SALES UP 13PC – OVERTAKING RIVALS

DANISH toy-maker Lego said first-half sales jumped 13pc despite a slower start to 2013 in the toy markets of North America and Europe. Lego, which estimates the world's children spend five billion hours a year playing with its toys, said it won market share on rising sales of its new building-block line Legends of Chima and its Lego Friends sets.

The latter series, introduced in 2012, is Lego's sixth attempt over the years to target girls and the "most significant" new product in a decade, according to chief executive Joergen Vig Knudstorp.

Crucially, the company's €1.4bn first-half sales were higher than those of main competitor Hasbro.

Irish Independent

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