Acquisition of Aqua Company by Danone Group 1. Reasons For Acquisition

Moch. Firman A.K.
2018310348
Z1
ACQUISITION OF AQUA COMPANY BY DANONE GROUP
1. Reasons for Acquisition
AQUA acquisition by DANONE was due to the intense competition and the emergence of new
competitors, as well as Lisa Utomo as owner of AQUA Golden Mississipi after her husband
Tirto Utomo, sold her shares on Danone. The acquisition was deemed successful after several
ways of development were not strong enough to save Aqua from the threat of new competitors.
2. Impact Acquisition
 Save Aqua from emerging competitors, because some way of development is not
strong enough if Aqua does not do the acquisition.
 Increase the quality of products and put Aqua as a producer of mineral water in the
packaging that is the in Indonesia.
 More innovating in extracting products such as Aqua presents bottle packing.
 Construction of Aqua factory which is not only in Jakarta, but also in other cities.
 Successfully achieving achievement as a single brand with the highest sales volume in
the world.
 The management of the company changed, the supreme decision in the hands of
Danone although the owner of Aqua who became President director, for example Aqua
can not refuse when the party Danone requested that every Aqua bottle label listed
Danone brand.
 With acquisitions, Aqua is able to expand its financed by Danone.
3. Development and acquisition of Aqua by Danone
AQUA company Performance after acquisition
In the end, Aqua did cooperation by selling shares on Danone Group on September 4, 1998.
Acquisition is considered right after some way of development is not strong enough to save Aqua
from the threat of new competitors. This step has an impact on improving product quality and
placing Aqua as the largest producer of bottled mineral water in Indonesia. In 2000, coinciding with
the turn of the millennium, Aqua launched a product labeled Danone-Aqua. However, it made the
acquisition that Danone did and the leadership changed.
Danone which is a multinational company whose business focuses on the field of Aqua as a
producer of mineral water in the packaging, franchise, and soft drinks is a multinational company
that has three expreslanation namely profit, product life cycle, and technology. Danone conducts
Profit exportation by acquiring products that cooperate with it using Horizontal diversification. So
Moch. Firman A.K.
2018310348
Z1
there is a profit sharing between Danone and AQUA itself. Then Danone conducts the Product Life
Cycle exportation. By understanding that there are several phases of the life cycle of AQUA
products, Danone makes innovations such as making AQUA Splash of Fruit and Mizone.
Danone increased its share ownership in PT Tirta Investama from 40% to 74%, so Danone became
the majority shareholder of Aqua Group. Aqua presents a new glass bottle packaging 380 ml on 1
November 2001.
 In 2001, Aqua menang telak di ajang Indonesian Best Brand Award. Mulai diberlakukannya
Kesepakatan Kerja Bersama [KKB 2002 - 2004] pada 1 Juni 2002.
 In 2003, the expansion of Aqua Group production activities was followed up through the
inauguration of a new factory in Klaten in the early years. Efforts to integrate company work
processes through the implementation of SAP (System Application and Products for Data
Processing) and HRIS (Human Resources Information System).
 In 2004, launch of Aqua's new logo. Aqua brings the purity of nature both in terms of
content and external appearance. Aqua launches a new variant of Aqua Splash of Fruit, a
type of water in the packaging that is given the flavor of strawberry and orangemango fruits.
The launching of this product initially wanted to strengthen Aqua's position as a beverage
manufacturer.
 In 2005, Danone assists the tsunami victims in ACEH. On 27 September, Aqua produced
Mizone, a nutritious beverage that is a product of Danone. Mizone comes with two flavors,
namely orange lime and passion fruit.
 In 2009, Danone will start to create a new factory in Cianjur
 In 2010, Aqua Group underwent significant changes in its organizational and operational
structure. The change is the delisting process of PT Aqua Golden Mississippi from the
Indonesia Stock Exchange (IDX) due to various cases so that the status of PT AGM legal
entity becomes a closed company. Aqua also introduced new innovations in its closing
cover to preserve natural purity.
 In 2013, Aqua held the 40 year of Aqua, the annual Aqua 40 birthday program with a joint
tagline for Indonesia, with the launching of a new logo.

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Moch. Firman A.K.

ACQUISITION OF AQUA COMPANY BY DANONE GROUP

1. Reasons for Acquisition

AQUA company Performance after acquisition

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