South African dairy and beverages group Clover has acquired a 51% stake in Frankie’s Olde Soft Drinks, to form Clover Frankie’s; a joint venture to produce and market a range of carbonated soft drinks, hot chocolate powder and lollies using the Clover and Frankie’s trademarks.
Clover had the option to acquire the remaining issued share capital in future at a purchase price to be calculated using an already agreed formula. The transaction was in line with Clover’s stated strategy to expand its portfolio of value-added and branded consumer products and provided a niche platform to entering the carbonated soft drinks market, as well as the possible extension to other product categories.
“Frankie’s is a much loved brand and a unique concept – consumers identify with its ‘good old fashioned’ values, unique taste and distinctive brand,” said Clover CEO Johann Vorster. “Our collaboration with Frankie’s allows us to do so measuredly through a manufacturer uniquely positioned between niche and every day soft drinks”.
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