GK buys 876 water brand
Published:Friday | March 12, 2021 | 12:17 AM
GraceKennedy Limited has struck a deal with related companies Bliss Limited and UniBev Limited to purchase the 876 spring water brand – a step up on the distribution partnership between the parties.
It’s the second acquisition announced by GraceKennedy in three days. And like the 100 per cent purchase of Scotia Insurance Eastern Caribbean Limited, neither the price of the water transaction nor the terms of the transactions were disclosed. Both deals are still to close.
UniBev Limited is a privately owned manufacturing company that has been operating in Jamaica for six years. The 876 spring water has been on the market since 2017, and is produced by UniBev in four sizes ranging from 330ml to 5-litre bottles. The product has been marketed over the years by GraceKennedy’s subsidiary, World Brands Limited, as an alkaline spring water sourced in Jamaica’s Blue Mountains.
GraceKennedy’s purchase of the brand adds to its water portfolio, which includes a 35 per cent share of the Catherine’s Peak water brand produced by Peak Bottling Company Limited. The conglomerate also distributes Catherine’s Peak.
“Brand acquisition is a key component of the growth strategy for our foods division. Since GK began partnering with UniBev to distribute 876, the brand has shown strong growth, and we see opportunities to expand this even further through possible line extensions and the export market. We’re excited to be taking steps to grow our portfolio of products to provide a wider selection to our consumers,” Group CEO Don Wehby said in a company release on the water deal.
Under their agreement, UniBev will continue to manufacture the product, and World Brands will continue to handle its distribution. The brand will be added to GraceKennedy Foods and Services portfolio.
With $23 billion in cash, GraceKennedy is pursuing a number of M&A deals, around a dozen of them at last report, to grow its near century-old operation.