C.W. Mackie goes for Rs. 1.1 b manufacturing JV with Danish partner for Sunquick

Tuesday, 28 February 2017 00:00 - - {{hitsCtrl.values.hits}}

C.W. Mackie Plc has announced plans to set up a joint venture with its longstanding Danish partner to manufacture and market concentrates and ready-to-drink products to the local market with an investment of Rs. 1.1 billion.

The company currently bottles and distributes Sunquick concentrated squashes in Sri Lanka in terms of an agreement with Co-Ro spanning a 40-year partnership. As per the new deal, products manufactured, processed and marketed will be under the Sunquick brand.

The company on Friday entered into a joint venture agreement with Co-Ro A/S, Denmark to set up Sunquick Lanka Ltd. (49% by C.W. Mackie and 51% by Co-Ro) and Sunquick Lanka Properties Ltd. (C.W. Mackie 51% and Co-Ro 49%).

C.W. Mackie said its contribution towards the joint venture is based on a business case of the project, together with the joint venture agreement, which have been reviewed and approved by the Board of Directors. The directors are of the view that the joint venture has the potential to be financially beneficial to C.W. Mackie in the medium to long term.

The 1942-founded Danish firm’s fruit-based brands, including Sunquick, Sun Lolly and Suntop, are sold in over 70 countries.