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By Kurt Sansone
A development plan currently under scrutiny by the Farsons board of directors is set to ensure beer and beverage production will remain the Group’s core business despite the company’s recent take over of two leading importers and wholesalers.
Farsons Chairman Louis A. Farrugia said the board of directors is still very focused on improving the company’s production facilities in the years ahead.
Farrugia told our sister paper, The Malta Financial and Business Times, this week that “a development plan is being actively considered by the board at this time.”
Farsons’ production line includes Malta’s very own beers, Cisk, Hopleaf and Blue Label as well as home grown soft drink Kinnie. The company also bottles under franchise, several world-renowned soft drink brands and the Danish beer Carlsberg.
The take over strategy, which can be described as aggressive by Maltese standards, may be in part fuelled by the prospects of a more liberalised market after EU accession.
Farrugia is categorical in his reply: “Farsons is intent on defending its market share and increasing its business both locally and overseas at a time of the complete liberalisation of trade.”
Farsons bought out beverage importer and wholesaler Guido Vella Cash ‘n’ Carry in November last year and last week the company announced a takeover bid for food importer Law. Quintano.
The latter acquisition sees Farsons expanding its operations into a new line of business - food importation and distribution.
Guido Vella is administered as a separate entity within the Group and the same arrangement is expected to be implemented in the case of Law. Quintano.
A similar take over occurred in 2000 when Farsons bought out Anthony Caruana and Sons, another importer and wholesaler of wines and spirits.
In the company announcement issued last week Farsons said it wanted to explore the potential synergies between its core business and the food distribution sector. Emphasis was also made on the company’s IT and marketing expertise, which Farsons described as an asset.
Farsons is a public limited company with around 1,700 shareholders. Farrugia said the Board of Directors has the responsibility of increasing its return to its shareholders adding that Farsons is always looking for ways to achieve this objective “by using its strengths within the economic environment that the country is in.”
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