Jamaican conglomerate GraceKennedy has signed an agreement to acquire Fonterra’s shareholding in the equally split joint venture Dairy Industries (Jamaica).
GraceKennedy Group, which operates in food and financial services, declined to disclose the terms of the deal with Just Food as it confirmed the business will now have full ownership of Dairy Industries (Jamaica).
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New Zealand-headquartered dairy giant Fonterra announced in May 2024 that it planned to quit the consumer-facing parts of the business to focus on ingredients in what it called a “step-change in strategic direction”.
Another dairy major, Lactalis in France, confirmed in August that it had acquired the Fonterra assets.
Dairy Industries (Jamaica) started out in 1964 and added cheese processing to its repertoire in 1968.
Its products include processed cheese in cans, cheese spreads under the Tastee label, This Is Really Great yogurt, and the powdered milk brand Anchor.
The company supplies the US and Canadian markets and countries across the Caribbean, including Guyana and Belize, GraceKennedy confirmed. Its 2024 annual report shows the company also markets its products in the UK and Europe.
GraceKennedy and Fonterra have jointly managed Dairy Industries (Jamaica) under a formal joint venture arrangement since 1996, according to a statement announcing the buyout.
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By GlobalDataThat agreement, involving Fonterra’s predecessor the New Zealand Dairy Board, was the co-operative’s first joint venture outside its home market.
Commenting on the takeover, Frank James, group CEO of GraceKennedy, said: “Dairy Industries has delivered consistent growth and profitability over the years, supported by a strong culture of innovation, an expanded product portfolio, and growing its export markets.
“This move positions us to build on this momentum, scale the business further, and deepen our leadership in the dairy segment.”
GraceKennedy posted group revenue of J$167bn ($1.04bn) in 2024, up 7.8% on 2023. Food accounted for 79% of its sales.
Profit before tax surpassed J$12.3bn for the first time, rising 8.6%.
Net profit attributable to shareholders rose 8.1% to J$8.4bn, with earnings per share climbing to J$8.52 from J$7.86 in 2023.
Pre-tax profit for food increased 22% to J$7.92bn.
When it released its 2024 results in February, GraceKennedy said its food division recorded “robust growth” during the year.
Andrea Coy, CEO of GraceKennedy Foods, said in the statement that although GraceKennedy will take complete ownership of Dairy Industries (Jamaica), its ties with Fonterra will remain in place through ongoing commercial arrangements.
