LASCO Manufacturing is on the brink of finalizing a significant distribution agreement with a prominent US retail chain, marking a pivotal step in the company’s strategy to enhance its presence on the American market, particularly along the East Coast. This anticipated deal is poised to not only fortify LASCO’s foothold in the US but also to expedite its ambitious export growth objectives, with a target of achieving 15% of total revenue from exports over the coming years.
Currently, LASCO, known for its popular juice and water brand iCool as well as a range of powdered beverages, derives approximately 10% of its revenue from international sales. James Rawle, executive chairman of LASCO Manufacturing, shared insights during a recent annual general meeting, stating, “We are at the point of signing a deal. We haven’t quite signed it yet, but I think we are there.” While he refrained from disclosing the name of the retailer, the implications of this partnership are significant.
A notable aspect of the upcoming expansion is the strategic shift toward LASCO’s non-liquid product lines, such as plant-based nutrition drinks and the Lasco food drink range. “Shipping water or other liquid products is too expensive, and there are efficient competitors in the US market. We’re focusing on products that make sense for export,” Rawle emphasized.
Lasco Distributors (LASD), a sister company, plays a crucial role in managing domestic distribution in Jamaica and also facilitates some export operations. However, LASCO Manufacturing is actively seeking collaborations with additional distributors outside of Jamaica to broaden its international reach.
Having established itself as a household name in Jamaica, Rawle aims to leverage this local success to propel LASCO’s products into new markets. “Lasco is one of the most recognisable brands in Jamaica. It has bandwidth. We can do so many things around the brand,” he remarked.
In preparation for increased demand driven by this expansion, LASCO is making significant investments to enhance its production capacity. The company has earmarked funds for a new beverage production line that is expected to increase capacity by 40%. “This new machinery will replace an old one, and the completion time is by August next year, which is super fast,” Rawle noted.
The decision to upgrade its production capabilities is critical for LASCO as it seeks to maintain competitiveness. Rawle explained that the new equipment, sourced from European suppliers, represents the company’s long-term commitment to efficiency. “We’re very close to full capacity, but the line we’re replacing has reached the end of its useful life,” he stated. “The new machinery will ensure the company can handle growing local demand while also catering to expanding export opportunities.”
While LASCO remains committed to organic growth, Rawle confirmed that the possibility of acquisitions is still under consideration. “There are two ways to grow a business. One is organically, and that’s what we are about. But this doesn’t mean we aren’t looking at opportunities to acquire something if it makes strategic sense,” he elaborated.
With a dual approach focusing on organic growth and the exploration of potential partnerships, LASCO is strategically positioning itself for success in both local and global markets. “We think we have the technology, we have the people, and we have the team to do it,” Rawle concluded, expressing optimism for a robust performance in the latter half of next year, with the anticipated US distribution deal playing a crucial role in that success.
