How Coca-Cola came to be mixed with water

Nov 26 2008 by Peter McCusker, The Journal

THE sale of Morpeth-based Waters and Robson saw North East dealmakers negotiating with some of the world’s biggest soft drink companies before US giant Coca-Cola secured the brand.

Waters and Robson was established in 1910 and has bottled Abbey Well natural mineral water since 1982, selling over 30 million litres of the water each year.

Tony Robson, managing director, was advised by unw chartered accountants and Watson Burton law firm throughout the deal which handed over the company to US-based Coca-Cola. Mr Robson said: “We had interest from several national and international companies, and I chose the Coca-Cola Company because I believe it can take the Abbey Well brand to the next level far quicker than my family and I would have been able to and make it an even greater success.”

Steve Lant, unw partner, said: “Once Tony thought he might sell, we agreed to provide corporate finance advice and all-round support. The sale was always going to be interesting, as the most likely buyers were some of the largest drinks companies in the world.

“However, it became even more interesting when there was a world financial crisis and a major change in the economic outlook during the due diligence phase. It is testimony to the strength of the Abbey Well brand that the deal progressed through to completion without any problems.”

Gillian Hall, head of corporate law at Watson Burton, believes the sale to Coca-Cola is a strong choice for Waters and Robson and the region. She said: “I think the deal is good for everyone – Tony gets a fair price for the company; Coca-Cola get a high quality natural mineral water brand, excellent facilities and staff; and the business and staff get a new responsible owner which is committed to investing in the facilities and developing the Abbey Well brand.”

Mr Robson has worked at Waters and Robson since leaving school and is immensely proud of the Abbey Well brand. He said: “Waters and Robson has rigorous standards which have to be maintained at all times. There’s a lot more to the bottling of natural mineral water than meets the eye. It requires substantial capital investment coupled with considerable expertise in many different fields. It is guaranteed to be a naturally wholesome water without any treatment that would alter its natural characteristics.

“We’re proud of the quality of Abbey Well, which is bottled from water naturally filtered through sandstone for at least 3,000 years.

“Coca-Cola’s investment brings great opportunities, enabling Abbey Well to be enjoyed by more people across the UK. I am confident with Coca-Cola that Abbey Well will be in a safe pair of hands and be developed in a dynamic, yet responsible way.”

unw’s team, led by partner Steve Lant, included corporate finance specialists Zara Lane and Neil Shepherd. Watson Burton’s legal team was led by Gillian Hall, head of corporate law, and included corporate partner Mark Lazenby, corporate solicitor Paul Wigham and property solicitor Michael Shuker.