The deal struck between food marketing company Nestlé Jamaica and GraceKennedy member company Dairy Industries Jamaica Limited should bring in an additional $20 million in annualised revenue to the group, in addition to opening up a new market segment for its Swiss-owned partner.
Dairy Industries is a joint venture between GraceKennedy Limited and Fonterra of New Zealand, through which they will produce processed cheese, yoghurt, and powdered whole milk. Its production of an 80-gramme powdered milk sachet – and a 120g sachet soon to be added to the line – the Nestlé Everyday brand has brought competition to Lasco LaSoy and Anchor powdered milk. Nestle Jamaica also plans to add a 120g packet to the Everyday line.
For a conglomerate now earning $100 billion-plus in revenue and over $5 billion in annual profit, the earnings under the milk contract seem relatively small. But Wehby says those funds go straight to profit, and that there is more to come from the partnership.
The arrangement also expands GraceKennedy’s partnership network, aligning with its own goals for a wider wingspan in the global consumer arena.