Sunshine Consumer extends portfolio beyond tea with Rs. 1.7 b acquisition of Daintee

Monday, 10 August 2020 03:35 - - {{hitsCtrl.values.hits}}

Says move timely in its bid to strategically expand presence in fast-growing FMCG segment
Acquisition as part of Group strategy to nurture and build local brands

The Consumer sector of the Sri Lankan conglomerate Sunshine Holdings has completed its acquisition of a leading confectionery company, Daintee Ltd., adding several prestigious brands to its portfolio, including Daintee, Milady and Bensons. The transaction was valued at Rs. 1.7 billion.

In a statement Sunshine said the move came at a time when the Group was looking to strategically expand its presence in Sri Lanka’s fast-growing FMCG segment by extending its portfolio beyond tea, where it holds the No. 1 position.

Daintee joins Sunshine Consumer’s growing portfolio of businesses that markets and distributes some of the country’s most-loved tea brands—Watawala, Zesta and Ran Kahata. The acquisition is in line with the Group’s strategy to nurture and build local brands.

Daintee Ltd., founded in 1984 in collaboration with Barker and Dobson, a prestigious UK confectionery company, is a market leader in the sweets and toffee category in Sri Lanka.

At present, the company boasts of an extensive product range consisting of toffees, sweets, jellies, chocolates and cocoa-based confectionery, bubble-gum, desserts, biscuits and snacks where Daintee maintains a 40% market share in toffees and sweets. The products are marketed under the brand names such as Daintee, Milady, Bensons, Chito, Chix, X-tra, Mr. Bitz, Excella and Longlive.

“We are pleased to welcome Daintee Ltd.’s confectionery brands and its talented employees to the Sunshine Group,” said Sunshine Group Managing Director Vish Govindasamy.

“Daintee’s portfolio of brands are household names which have gained popularity and loyalty across generations. The addition of the Daintee portfolio of brands is a significant step towards Sunshine Consumer’s aim of being a strong player in the FMCG sector. With our marketing prowess that has enabled us to be the No.1 branded tea company in Sri Lanka, we hope to achieve the vision we have for every one of our brands to be the No. 1 in their sector of influence.”

The company has two primary manufacturing sites and four other locations for warehousing and packaging in the Ratmalana industrial zone. Furthermore, Daintee Ltd. is certified with ISO 9001:2015 and is the only confectioner in the country with an advanced microbiology testing centre.