Mexican food company Grupo LALA has signed a strategic agreement with the Costa Rican firm Florida Bebidas for the production, distribution and sale of LALA products in Costa Rica.
The partnership is expected to enable LALA to gain access to a platform to boost its presence in the region.
Synergies resulting from the agreement will improve LALA's operations in Costa Rica to have a distribution capacity.
The capacity will be achieved through Florida's logistics network to serve points of sale in the Costa Rican traditional trade channel.
Under the agreement, LALA will also get raw milk supply assurance with the support of the Regional Farming Cooperative of Dairy Farmers (Coopeleche).
The supply is expected to allow LALA to manufacture its product under high-quality standards.
Besides, LALA will attain production capacity through the partnership, by acquiring a dairy production facility located at San Ramón Alajuela, Costa Rica.
The new production, supply and distribution capacities obtained as a result of partnership with Florida will help LALA to expand and strengthen its operations in the Central American region.
However, LALA, Florida and Coopeleche will continue to operate independently.
The strategic agreement is subject to the corresponding closing conditions and regulatory approvals.
Grupo LALA, a company focused on healthy and nutritious food, has 22 LALA production plants in operation and 166 distribution centers in Mexico and Central America.
It currently employs over 33,000 people and operates a fleet of more than 7,000 vehicles to distribute their over 600 products.
In May last year, it inaugurated phase I production for its $50m manufacturing plant in San Benito, Nicaragua.
The facility was built over an area of around 15 acres to produce dairy products as well as process fresh milk to supply to the Nicaraguan market.
