Feb 27, 2017 (LBO) – Sri Lanka’s CW Mackie has entered into a joint venture agreement with their Danish counterpart to expand the ’Sunquick’ brand, the company said in a stock exchange filing.
CW Mackie and firm Co-Ro from Denmark has entered the agreement last week with the purpose of manufacturing, processing and marketing Co-Ro’s products in the form of concentrates and ready to drink (RTD) products marketed under ’Sunquick’ brand.
Accordingly, Sunquick Lanka (Private) Limited (CWM 49%: Co-Ro 51%) and Sunquick Lanka Properties (Private) Limited (CWM 51%: Co-Ro 49%) will be established for the purpose of the joint venture.
The joint venture provisionally envisages an investment of 1.1 billion rupees jointly.
“CWM’s contribution towards the joint venture is based on a business case of the project which together with the joint venture agreement, has been reviewed and approved by the Directors,” C W Mackie said.
“The Directors are of the unanimous view that the joint venture with Co-Ro as contemplated has potential to be financially beneficial to CWM in the medium to long term.”
CWM currently bottles and distributes Sunquick concentrated squashes in Sri Lanka in terms of an agreement with Co-Ro spanning a 40 year partnership.
Co-Ro which was founded in 1942 sells its premium fruit based brands such as Sunquick, Sun Lolly and Suntop in more than 70 countries.