GSK and UPCH to launch Lucozade across China

Issued:  Monday 28 September 2009, London UK

GlaxoSmithKline (GSK) today announced an exclusive agreement with President (Shanghai) Trading Co. Ltd, a wholly-owned trading arm of Uni-President China Holdings Ltd (UPCH), one of the leading food and beverage companies in China, to launch GSK's highly successful Lucozade drinks franchise across China.  GSK and UPCH are also in the early stages of discussions on a range of additional opportunities.

Lucozade is one of the world’s leading sports and energy brands with global sales of approximately £400 million.  The brand holds market-leading shares in the UK, Ireland, West Africa and Hong Kong.  The Chinese cold beverage market is currently valued at 178.5bn RMB (£16bn) and the market for energy drinks is one of the fastest growing areas of functional drinks with a CAGR of c.10 per cent (2003 - 2008)¹.  Distribution of Lucozade under this agreement will begin in early 2010.

Commenting on the new alliance, John Clarke, President, Consumer Healthcare GSK said: “GSK is focused on building a diverse global healthcare business, and this agreement marks the first in a series of steps we are taking to expand our successful nutritional healthcare business into new and emerging markets.  Lucozade is a dynamic and powerful brand, and together with UPCH, we will now have significant new scale and local expertise to increase availability of the brand to more consumers in China, one of the world’s largest and fastest growing economies.”

With this new partnership, consumer access to Lucozade will increase significantly through UPCH’s strong distribution network to diverse sales channels across China. UPCH holds a leading position in the highly competitive juice drink and ready-to-drink tea markets in China, with nationwide reach to more than one million outlets.

GSK will continue to manufacture Lucozade at its existing manufacturing site in Guang Dong, China and will invest behind further capacity with partners.

1. Euromonitor

NOTES TO EDITORS

GlaxoSmithKline – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer.  For further information please visit www.gsk.com

GSK Consumer Healthcare is one of the world's largest over-the-counter consumer healthcare products companies. Its many well-known brands include the smoking cessation product, NiQuitin CQ as well as many medicine cabinet staples, including Panadol, Solpadeine, Aquafresh and Sensodyne. GSK’s Nutritional Healthcare arm encompasses the well-known drinks brands Lucozade, Ribena and Horlicks.

Lucozade Key Facts

• Global sales £382mn in 2008
• #6 Sports / Energy beverage worldwide
• Compound annual growth rate of c. 13 per cent over the last 30 years
• Market leader in UK, Ireland, West Africa and Hong Kong
• Lucozade has a circa 50 per cent share of the UK market for Sports and Energy drinks.

UPCH

UPCH is one of the leading beverage and instant noodle manufacturers in the PRC. Its principal beverage products are juice drinks and ready to drink teas. UPCH also produces and sells such beverages as milk tea, coffee and bottled water. UPCH distributes its products in all 31 provinces across the PRC through diversified sales channels. For further information please visit www.upch.com.cn.

GlaxoSmithKline – one of the world’s leading research-based pharmaceutical and healthcare companies – is committed to improving the quality of human life by enabling people to do more, feel better and live longer.  For further information please visit www.gsk.com