FDBusiness.com

UK-based global healthcare group GlaxoSmithKline is planning to launch its Lucozade energy drink in the US, which is the world’s biggest nutritional health market. The Lucozade brand, which had sales of £376 million in 2009, is currently predominantly sold in Britain and Ireland.

However, it was recently launched in the vast Chinese market, after GSK signed an agreement with President (Shanghai) Trading Co, a trading arm of Uni-President China Holdings, a leading food and beverage company in China.

Andrew Witty, chief executive of GSK.

The moves into China and the US are in line with GSK’s goal of increasing its presence in emerging markets of the world. Andrew Witty, chief executive of GSK, plans other launches through partnership deals in markets such as Mexico and Brazil.

Indeed, the roll out of Lucozade is part of his wider strategy of creating a global and diversified business. Investment in the consumer business, which in the past had been considered a candidate for disposal, is now seen as means of growing GSK’s overall sales.

The Lucozade brand along with Ribena and Horlicks are part of GSK’s Nutritional Healthcare division. Although the Nutritional Healthcare division is only a small part of GSK’s global operation, which achieved pre-tax profits of £7.9 billion on sales of £28.4 billion last year, its is still a sizeable and lucrative business, armed with its powerful brands portfolio.

GSK is the third biggest player within the £6.2 billion UK take-home soft drinks market, behind leader Coca-Cola Enterprises and second ranked Britvic. The top three players account for almost half of this market. Lucozade was the second biggest brand within the take-home market last year and Ribena was in seventh place.