Coca Cola Australia buys Mojo Kombucha

Coca Cola Australia announced on Tuesday it has acquired the Organic & Raw Trading Co., the Australia-based owner of Mojo Kombucha.

The terms of the deal were not disclosed. In a move that sees the soft drink maker diversify into low-sugar, natural beverages, Coca Cola will add Mojo brands to its portfolio of 165 products and 25 brands across Australia.

“The addition of Mojo Kombucha fits perfectly with the growing popularity of organic, probiotic drinks,” Vamsi Mohan, president of Coca-Cola Australia, said in a statement.

In the last twelve months, Coca Cola has been buying up healthier drink companies, including sparkling water, as consumers become increasingly health conscience.

More recently, the soft drink heavy weight acquired UK coffee chain Costa for $5.1 billion and invested a small stake into Kobe Bryant’s sports drink BodyArmor in August.

For the second quarter 2018, Coca Cola reported net revenues declined 8% to $8.9 billion, impacted by a 15% headwind from the refranchising of company-owned bottling operations.

However, organic revenues grew 5%, driven by concentrate sales growth of more than 2% and price/mix growth of more than 2%.

“We’re encouraged with our performance year-to-date as we continue our evolution as a consumer-centric, total beverage company,” said James Quincey, President and CEO of Coca-Cola. “We have the right strategies in place and remain focused on achieving our full year guidance.”