GraceKennedy to relaunch Nurishment brand in Europe

Friday, June 07, 2019

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GRACE Foods UK Limited will relaunch its 'Nurishment' branded products as part of plans to improve the performance in the European market.

For the financial year 2018, GraceKennedy reported revenue of $13.8 million from Europe including the United Kingdom. The sales were, however, flat when compared to the financial year 2017 which totaled $13.8, but lower than the three-year period 2014 to 2016 which averaged revenue of $14.1 million.

“In the UK we did experience the loss of one of our third-party operators. However, we are looking to grow that business in 2019 and we will be relaunching one of our key brands Nourishment. We are going to change the labels on the canned format and we are also going to have new packaging,” Group Chief Financial Officer, Andrew Messado told shareholders last Wednesday during the company 2018 annual general meeting.

Although Grace Foods UK saw a decline in revenue due to the loss of a third-party brand, the Grace brand showed double digit growth driven mainly by Grace Chips, organic and coconut product ranges, Grace Aloe drinks and the Rio Pacific food service range in France.

The Nurishment brand showed some recovery in the last half of 2018.

Nurishment, a milk-based product, is served in 500 ml bottles in chocolate, vanilla and strawberry flavours. The product has self space in the UK at the Sainbury's supermarkets, Boots and Superdrugstores priced at approximately 2.29.

The product is marketed as having “many of life's daily essentials, including key vitamins and minerals.

Group Chief Executive Officer Don Wehby noted that Grace Foods UK will pursue opportunities to bolster its presence in the European market, by building on new distribution contracts to grow the supply of Grace products in the market.

“The business continues to expand the distribution of its products through new listings of Grace and third-party brands in co-ops and chains. Despite the loss of a principal brand, competitive pressures across key products and channels, the outlook for the future is positive.”

Aside from the relaunch of the Nurishment brand, Grace is also looking for improved performance in 2019 from refreshed La Fe and Grace brandswhich commenced in 2018, to include the updating of the labelling for numerous Grace and La Fe products.

“There were also targeted efforts to re-energise our marketing websites and electronic product catalogues for our portfolio of global brands including Grace, Dunn's River, Nurishment, Grace Aloe, Encona, La Fe and Caribbean Choice,” Wehby said.

GraceKennedy's International Food Trading subsidiaries delivered mixed results for 2018 with Canada achieving new milestones for its business. Grace Coconut Water regained its number one position for Coconut Water in Canada. According to Nielsen data based on a 52 weeks period ending January 5, 2019, Grace Foods Canada managed to attain 9 per cent growth in dollar volume. GraceKennedy Foods (USA) LLC recorded growth in the Grace and La Fe brands and third-party lines.

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