Large beverage companies to look abroad for growth
According to a new report published by Fitch Ratings, a credit rating agency, weak US market trends will force large beverage companies to increasingly rely on international expansion, rather than on stagnating domestic demand. The agency notes that the US non-alcoholic beverage market is mature, with low volume growth and high pro capita consumption, and that current economic downturn represents a further blow to its future prospects. Fitch identified companies in booming energy drinks and tea segments as likely takeover candidates, although warned that the limited number of acquisition targets would make meaningful continued volume growth difficult to achieve.