LASCO Manufacturing is poised to finalize a distribution agreement with a significant retail chain in the United States, a move that could transform its presence in the American market, especially on the East Coast. This partnership is crucial for LASCO as it seeks to ramp up its export initiatives, aiming to boost its international sales to 15% of overall revenue in the coming years.
Currently, the company, which is renowned for its iCool juices and Lasco powdered beverages, generates approximately 10% of its revenue from exports. James Rawle, the executive chairman of LASCO Manufacturing, shared this exciting development during the company’s recent annual general meeting, though he opted not to disclose the name of the retail chain involved.
“The deal is on the cusp of being signed,” Rawle stated, reflecting optimism about the potential partnership. He elaborated that the company is concentrating its export efforts on non-liquid products, such as plant-based nutritional drinks and the Lasco food drink range, acknowledging the high shipping costs associated with liquid products and the competition they face in the U.S. market.
Lasco Distributors (LASD), an affiliate, currently manages the domestic distribution of LASCO Manufacturing’s products in Jamaica. While LASD is involved in some export activities, the manufacturing arm is looking to forge partnerships with distributors outside Jamaica to enhance its international footprint.
With a well-established reputation as a household name in Jamaica, LASCO is now set on leveraging its local success to capture a broader market abroad. Rawle remarked, “Lasco is one of the most recognizable brands in Jamaica. We have significant potential to expand the brand further.”
To support its growth ambitions, LASCO is investing significantly in upgrading its production capabilities. The company plans to introduce a new beverage line, which will replace an outdated system, delivering a substantial 40% increase in production capacity by August next year.
“This transition is crucial for maintaining our competitiveness,” Rawle explained. “The machinery will be sourced from reputable European suppliers, underscoring our commitment to long-term efficiency improvements.”
While LASCO is primarily focused on organic growth, the executive chairman indicated that they are also open to acquisition opportunities. “We believe in growing organically, but we remain vigilant for strategic acquisition prospects that could enhance our business,” he said.
By combining organic growth with the possibility of new partnerships, LASCO is strategically positioning itself to excel in both local and international markets. “We are confident in our technology, our workforce, and our team,” Rawle added, projecting a strong performance in the second half of next year, significantly bolstered by the anticipated U.S. distribution deal.
