GraceKennedy has taken a decisive step to tighten its grip on one of its most productive assets, agreeing to acquire full ownership of Dairy Industries (Jamaica) Limited and bringing a nearly three-decade partnership with New Zealand-based Fonterra to a close.
Once completed in January, the transaction will see GraceKennedy assume 100 per cent control of the dairy manufacturer, a move that underscores the group’s sharpened emphasis on scale, exports, and higher-value food production. The joint venture, established in 1996, has evolved into a consistently profitable operation and a central engine within GraceKennedy’s food portfolio.
Group CEO Frank James described the buyout as a natural progression, aligning ownership with operational reality. With the food division now responsible for the majority of group earnings, consolidating control over a core manufacturing platform was both strategic and timely.
Under GraceKennedy’s stewardship, Dairy Industries has expanded well beyond its traditional canned cheese roots. The business has doubled export revenue in recent years, with overseas sales now accounting for more than a quarter of total turnover. Its products are distributed across 21 countries, anchored by strong demand in North America and the United Kingdom.
That international footprint is set to widen. Management has confirmed active plans to enter two additional markets—one within the wider Caribbean and another in Europe—though regulatory timelines mean at least one launch is more likely in 2026 than sooner.
Innovation remains a defining feature of the operation. Recent product introductions include yogurt lines under the “This is Really Great” brand, drinkable yogurts, sour cream, cream cheese, and a newly developed shredded cheese designed to melt—an intentional break from long-standing consumer perceptions of the Tastee Cheese brand. A retail rollout of the shredded product is expected by the end of March, while a smoothie range is scheduled to debut in the first quarter.
Packaging upgrades have also been deployed, most notably an easy-open tin for smaller cheese cans, introduced in response to consumer feedback. According to James, the acquisition gives GraceKennedy greater freedom to accelerate these initiatives and broaden the product mix without structural constraints.
The transaction also reflects a parallel realignment on Fonterra’s side, as the global dairy cooperative continues to streamline its portfolio and refocus on ingredients and food-service channels. James characterised the separation as cooperative and strategically clean, allowing each party to concentrate on what it does best.
New commercial arrangements will accompany the ownership change. GraceKennedy will secure a long-term supply agreement to maintain raw material consistency, while continuing to distribute Fonterra’s Anchor brand and other key products in the Jamaican market.
At group level, the acquisition further cements food as GraceKennedy’s primary growth driver. The division now contributes roughly 80 per cent of group revenue and just over half of total profits, having outpaced financial services in both scale and momentum.
That shift comes as other segments, particularly remittance services, adjust to structural pressures such as declining global transfer fees. In response, GraceKennedy is pushing digital remittances aggressively while re-engineering its physical footprint through partnerships and in-store integrations. Pilot programmes now allow customers to collect remittances at supermarket checkouts and major retail chains, reducing overhead while preserving convenience.
Taken together, the Dairy Industries acquisition is less about closure and more about control. For GraceKennedy, full ownership unlocks speed, focus, and optionality—three assets increasingly necessary as the group positions its food business for the next stage of international growth.
