GraceKennedy Acquires Full Ownership of Dairy Industries Jamaica

GraceKennedy, the Jamaican conglomerate known for its operations in food and financial services, has reached an agreement to acquire Fonterra's shareholding in Dairy Industries Jamaica. This acquisition will result in GraceKennedy having full ownership of the dairy venture. The terms of the deal were not disclosed.

Fonterra, headquartered in New Zealand, announced in May 2024 its intention to exit consumer-facing business segments to concentrate on ingredients. This strategic shift facilitated the sale of its assets to French dairy giant Lactalis in August 2024.

Dairy Industries Jamaica, established in 1964, expanded its operations to include cheese processing in 1968. The company's product portfolio includes processed cheese, cheese spreads under the Tastee label, yogurt, and the powdered milk brand Anchor. It serves markets in the United States, Canada, the Caribbean, the UK, and Europe.

GraceKennedy and Fonterra have been managing Dairy Industries Jamaica as a joint venture since 1996. This partnership was Fonterra's first joint venture outside New Zealand, initiated by its predecessor, the New Zealand Dairy Board.

Frank James, Group CEO of GraceKennedy, stated, "Dairy Industries has delivered consistent growth and profitability over the years, supported by a strong culture of innovation." GraceKennedy reported a 7.8% increase in group revenue to J$167 billion in 2024, with the food division contributing 79% of sales. Pre-tax profit for the food sector rose by 22% to J$7.92 billion.

Despite the ownership change, Andrea Coy, CEO of GraceKennedy Foods, confirmed that commercial ties with Fonterra will continue.