Damm, the Spanish drinks group, has acquired a 49 per cent stake in Granini Iberica, the company which owns the licence to produce and distribute Granini brand fruit juices in Spain and Andorra, for an undisclosed sum.
The 49 per cent stake was previously owned by Grup Distribucio Costa Brava (GDCB), which will continue to operate as a distribution partner for the company.
Damm's subsidiary Corporacion Economica Damm will now be the junior partner in a joint venture with Germany's Eckes Granini International, which will continue to hold a 51 per cent stake in its fruit juice business. The partnership with Damm is designed to boost sales of Granini fruit juices and nectars in Spain, using the brewer's distribution network and contacts.
But Damm will also benefit by continuing to diversify its business away from the stagnating beer market. The company has already entered the bottled water market with the acquisition of the Vieri and Fuente Liviana brands.
Granini's brands are already sold throughout Spain through the major retail chains and the horeca sector, and the company has a production facility in Catalonia. Eckes-Granini said it aimed to be the leading fruit juice producer in every market where it operates, a goal which would be more easily achieved in Spain with the assistance of Damm.
Although it is already the leading player in Spain with sales of €47 million, Granini faces strong competition from Pago, the fruit juice arm of Austrian brewery BBAG, as well as from numerous local brands.
"We are delighted to team up with a leader like Eckes-Granini International to reinforce the growth of Granini in the attractive and dynamic Spanish fruit juice market. We have extensive experience in the distribution and marketing of our beer and water brands throughout Spain. The co-operation with Eckes-Granini Iberica creates a unique opportunity to reinforce Granini's leadership in Spain," said Enric Crous, director general of Damm.
Damm, in which Interbrew has a small stake, is the third largest brewer in Spain behind Heineken-owned Cruzcampo and San Miguel. Its main brands are Estrella Damm, Voll Damm, Estrella del Sur, Estrella de Levante, Keler and Budwseiser. Together with its subsidiary Font Salem, the group produces more than 11 million hectolitres of beer, water and private label beverages each year.
Eckes-Granini International is the leading fruit juice company in Europe, with operations in ten European countries and its fruit juices sold in more than 70 countries all over the world. Products are marketed under well-known brands like Granini, hohes C, Joker, Réa, Sió, Clippo, Marli, Mehukatti and YO.