Skip to main content

Clover to acquire Frankie’s Olde Soft Drinks

| On the move

Clover Industries Limited (“Clover”) and Frankie’s Olde Soft Drinks cc (“Frankie’s”) announced the conclusion of agreements that will result in the establishment of a new business, Clover Frankie’s Proprietary Limited (Clover Frankie’s) to manufacture, sell, market and distribute a range of carbonated soft drinks, hot chocolate powder and lollies using the Clover (under license) and Frankie’s trademarks.

Clover will hold 51% of the new venture and Frankie’s the balance. Clover has 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 is in line with Clover’s stated strategy to expand its portfolio of value added and branded consumer products and provides a niche platform to entering the carbonated soft drinks market as well as the possible extension to other product categories.

Commenting on the acquisition, Johann Vorster, Clover Chief Executive, said:

“Frankie’s is a much loved brand and a unique concept - consumers identify with its ‘good old fashioned’ values, unique taste and distinctive brand. Apart from the brand synergies, this acquisition provides Clover with an important platform from which to launch into carbonated soft drinks and other value added branded ranges. Our collaboration with Frankie’s allows us to do so measuredly through a manufacturer uniquely positioned between niche and every day soft drinks.”

Mike Schmidt, co-founder of Frankie’s, stated:

“This deal represents a huge opportunity for the Frankie’s brand. Whilst on one hand it was an emotionally tough decision to part with the brand that Paula and I have spent the past nine years growing, on the other we knew that this was absolutely the right thing and more importantly the right time to do this deal. As shareholders in Clover Frankie’s we are very confident that the brand will retain its unique character and will continue to grow from strength to strength.

“Currently Frankie’s outsources its entire sales, merchandising and production function. With 80% of historical sales happening in Gauteng, KwaZulu-Natal and the Western Cape, we are confident that Clover Frankie’s will benefit tremendously from the wider national footprint, additional listings and sales and merchandising expertise in Clover’s distribution network.

“We are confident that with access to capital and the financial backing of the mother brand Clover, Frankie’s will be able to unlock the full potential of our positioning as a distinctive retro brand with unique flavours.”

The transaction is subject to the completion of due diligences and other customary suspensive conditions related to a transaction of this nature.

- New company called Clover Frankie’s (Pty) Limited to be formed

- Sales of retro branded, unique soft drinks, lollies and hot chocolate to benefit from enhanced distribution, sales and merchandising capacity

-  Potential for expansion into other product categories



Related Articles

'Tis the season for on-demand shopping, now wit...

Pick n Pay asap! is feeling festive and is giving away up to R30 million to customers

Big growth for Spar’s rival to Checkers Sixty60

By: Hanno Labuschagne  - MyBroadband South African grocery retailer Spar has recorded substantial user and revenue growth for its on-demand delivery app Spar2U over the past year.

What customers want this Black Friday, with clo...

Pick n Pay launches Early Black Friday deals, more to launch next week In recent years, there has been a noticeable shift in consumer focus towards prioritising Black Friday deals on groceries, particularly meat, non-perishable pantry items, and ...

The SPAR Group set to transform KZN business wi...

The SPAR Group South Africa has appointed Damon Harry as Divisional Managing Director for SPAR KwaZulu-Natal. Harry replaces Angelo Swartz, who was recently appointed CEO for The SPAR Group.

The SPAR Group appoints retail expert Ed von Ge...

The SPAR Group has announced Ed von Gericke as the new National Retail Operations Executive for The SPAR Group Southern Africa. With his appointment, von Gericke is set to lead SPAR's journey of growth and innovation, leveraging his leadership ski...