Jan 2015 Financial News

GraceKennedy forms new US-based distribution subsidiary

Jan 28, 2015

The GraceKennedy Group (GK) has formed a new subsidiary to distribute LaFe goods within three states in the USA. The action forms part of its build-out strategy within the US market.

The GK will directly manage its own distribution in the Metro NYC, Atlanta and Florida markets effective beginning today through its newly formed subsidiary GraceKennedy USA LLC - DBA LaFe, stated a US circulated release.

"Iberia has done a great job. We are thankful to them for that partnership and we wish them all the very best," said GK chief executive, Don Wehby in the release.

"However, we have a mission at GraceKennedy of becoming a global consumer group, and controlling our own route to market will give us a significant advantage in being able to do this."

GK acquired the operating assets and business of US-based food company LaFe last July. At the time of acquisition, Wehby said the move provided GK access to the Hispanic market -- one of the fastest-growing segments in food and beverage -- and that it would give Grace Foods the ability to own its own route to market in the US. With operations in Moonachie, New Jersey; Miami, Florida; and Raleigh, North Carolina; and brand and distribution presence in the New York City/Tri-state area, Florida, Georgia and the East Coast, LaFe presents a strong platform for growth.

"We have managed to integrate the Caribbean and Latin cultures seamlessly, and business has been going very well," stated president of GraceKennedy USA LLC and GK Foods Divisional Head, Michael Ranglin. "Distribution is a new phase we're entering and we are ready to deliver on the great customer service for which GraceKennedy has come to be known in the US and globally."

Ranglin added that the company's sales representatives will be out in the field in the next couple of months interacting with customers.

Grace Foods' presence in the US market began over 20 years ago. Grace products are available in national and regional chains across the US, such as Walmart, Publix, Stop & Shop, Giant, Shoppers and ShopRite as well as many independent grocers such as Western Beef, Key Foods and Associated Food Stores.

Source:
BY STEVEN JACKSON Business reporter jacksons@jamaicaobserver.com
Jamaica Observer
Wednesday January 28, 2015   

http://www.jamaicaobserver.com/business/GraceKennedy-forms-new-US-based-distribution-subsidiary-_18302440