GlaxoSmithKline sells Lucozade and Ribena to Suntory

GlaxoSmithKline has reached a deal to sell off its nutritional drinks brands Lucozade and Ribena to the Japanese company Suntory Beverage and Food.

The 1.35 billion pound cash deal is expected to be completed by the end of the year and ties in with the company's strategy of focusing its consumer business on a core portfolio of healthcare brands, with a particular emphasis on emerging markets.

Suntory will acquire global rights to the brands and take control of GlaxoSmithKline's Coleford manufacturing site in the Forest of Dean, with the vast majority of the employees to transfer over to Suntory.

This deal will help GlaxoSmithKline to deliver on its late-stage pipeline of pharmaceuticals and vaccines.

David Redfern, chief strategy officer at GlaxoSmithKline, said it elected to sell to Suntory based on its "established beverages business, ambitious growth plans and also their recognition of the strong performance and capability of the GlaxoSmithKline employees working on these products".

The firm came to the decision to divest the brands following a strategic review commenced in February 2013, coming as part of long-term efforts to sell-off non-core consumer brands.