GraceKennedy Limited (GK) has entered into an agreement to acquire privately owned Jamaican manufacturing company Unibev Limited.

Branding itself as beverage contract manufacturer, Unibev specialises in fully integrated beverage solutions, which means it is involved in all aspects of the beverage manufacturing process, including sourcing raw materials and packaging. With its headquarters on Marcus Garvey Drive in Kingston, the company also operates a manufacturing facility located in Spring Garden, Portland, which is certified by the International Bottled Water Association and comprises a Blue Mountain spring water source.

“Our focus is to provide co-packing solutions at globally competitive prices with a view of building Jamaica’s beverage export potential,” Unibev’s website states, adding the facility in Portland “consists of a state-of-the-art laboratory and top-level equipment”.

According to GK Limited, the transaction is subject to customary closing conditions and “will place GK in an even stronger strategic position within the Jamaican spring water market”. The company, however, did not disclose a consideration price for the transaction.

GK Group CEO Don Wehby, commenting on this latest acquisition, noted, “The acquisition of Unibev is critical for GK, as we pursue our 2030 vision, and more specifically, as we advance our position in the growing spring water market in Jamaica. We are strategically building on our recent investments in this space — our acquisition of 876 spring water and increasing our stake in Catherine’s Peak — fortifying our supply chain to support this part of our business.”

Wehby, however, when asked by the Jamaica Observer how GK Limited will leverage Unibev’s Portland facility, he said, “We are looking at flavoured water and innovative packaging, for example, TetraPak”.

He added that a team has been commissioned to undertake a feasibility study and business case for the production of beverages using the packaging, further revealing, “We are going to focus on the export market, primarily in the Caribbean.”

As outlined in its vision 2030, GK Group is aiming to become the number one Caribbean brand in the world with 70 per cent of its revenues and profits earned outside of Jamaica. In addition, the company has targeted earning US$2.1 billion in revenues and US$250 million in profit before tax by 2030.

In its bid to achieve this vision, the consumer goods and financial services conglomerate has outlined a strategy involving both inorganic growth as well as expansion through mergers and acquisitions.

Just last year GK acquired the 876 spring water brand from Unibev and Bliss Limited. In February this year, GK became majority stakeholder in Catherine’s Peak Bottling Company Limited after increasing its holdings from 35 per cent to 70 per cent.

“GK has been in partnership with Unibev since it began operations in 2017; first as distributors of 876 spring water through World Brands Services, then when we became owners of the 876 and Catherine’s Peak spring water brands — both of which it manufactures; and we have watched the business grow over time. We are very excited about all the possibilities this new venture presents for innovation — new beverage product lines and alternative packaging solutions,” Wehby outlined.

Unibev is set to become GK’s sixth manufacturing facility in Jamaica upon completion of the acquisition.

“We are seizing opportunities to grow our beverage brands by expanding our manufacturing segment,” Frank James, CEO of GK Foods – domestic, pointed out.

“In addition to the opportunities presented for our spring water business, our acquisition of Unibev fits in perfectly with our manufacturing transformation strategic plan, which aims to bolster our competitive advantage, and firmly establish GK as a regional powerhouse in food and beverage manufacturing,” he continued