Name : Bety Setyaningrum

Student Number : 2018310489

The acquisition of AQUA Golden Mississipi by Danone

AQUA is a brand of bottled drinking water produced by PT. Aqua Golden Mississipi which was
established in Indonesia since 1973. Two years later, in 1975, Aqua launched a product in a 950
ml glass bottle with a selling price of Rp. 75, which is twice the current price of gasoline. In 1982,
Mr. Tirto replaced Aqua raw material which was originally derived from wellbore water into
mountain water, because it was considered mountain water contained calcium, magnesium,
potassium, iron and also sodium which was beneficial for the body. In addition, Aqua also tries to
improve its distribution system, by creating a door-to-door delivery concept and creating a shipping
concept using cardboard and gallons. Because of the renewal of its distribution concept, Aqua's
sales could increase consistently and eventually Aqua's sales reached two trillion Rupiahs in 1985.
Then in 1984, Aqua established a second factory in Pandaan, East Java. A year after setting up
the factory, Aqua developed a product by reducing the size of the packaging to 220 ml.

Although they had shared product development, Aqua products at that time could hardly compete
with other mineral water products and finally on September 4, 1998, Aqua sold its shares to
Danone Group. Danone Group continues to increase its share purchase, so Danone Group
becomes the majority shareholder of Aqua. Aqua sold its shares to Danone Group due to the
financial condition of Aqua's company after Mr Tirto Utomo who was the founder of Aqua past a
way, and also many of his new bottled drinking water products have sprung up which made the
competition even tougher. Finally, Mr. Lisa Tirto, who is the son of Mr. Tirto Utomo, decided to sell
his shares. According to him this was the best effort he could make to save his company. Danone
Group finally acquired Aqua so that in 2000, Aqua launched a product with label "Aqua Danone".
Danone Group is a multinational company that produces various types of food and drinks. Danone
acquired Aqua using horizontal diversification. Horizontal diversification is a merger of two or more
companies carried out by similar companies or the same business venture. The purpose of this
acquisition is to increase market share or kill competitors. Danone Group itself is a company
founded in 1915 in Barcelona, Spain.

Because of the merger between Aqua and Danone, the company of Aqua can be more developed.
Daneone creates new innovations by developing new products such as making Aqua Splash of
Fruit and Mizone. Unfortunately, Aqua Splash of fruit is less attractive to consumers, so this
product disappears in the market and is no longer produced.
This product does not last long in the market because the Aqua is less socializing with consumers.
that this water is given essence with fruit flavors, so the water should not be dried in the sun, but
must always be in the refrigerator. But unlike Mizone, this product is more popular by consumers
than Aqua Splash of Fruit and until now Mizone are still on the market and are still popular with
people. Not only developing new products, but Aqua and Danone also strive to maintain old
products by improving product quality and improving production and packaging processes, so as to
position Aqua as the largest mineral water producer in Indonesia.

Reference :
https://blog.ub.ac.id/iffatf/2013/11/11/akuisisi-pt-aqua-golden-mississipi-oleh-danone/
https://id.wikipedia.org/wiki/Group_Danone