It has been a hundred years since Aristide Lassonde launched his company as a vegetable cannery in Rougemont, Quebec. Forty years later, the company embarked on what it’s widely known for; the manufacture of apple juice (Lassonde, 2018). Today, Lassonde Industries Inc. (TSX: LAS.A) celebrates its 100th year and has 14 plants in Canada and the United States with more than 2100 employees (Lassonde, 2018).
The company develops, manufactures and markets three distinctive types of food products: fruit juices and beverages, specialty foods and wines and ciders. The first is the most important business sector for the company and A. Lassonde, the oldest of its subsidiaries, is the Canadian leader (Lassonde, 2018).
In 2011, Lassonde firmly established his footing in the United States with the acquisition of Clement Pappas, the second largest producer of private label juice and fruit drinks ready to drink in the United States (Lassonde, 2013). This acquisition doubled the company’s revenues from $ 536 million in 2010 to $ 1.02 billion in 2012. In 2014, with revenues stabilizing on both the Canadian and US sides, Lassonde acquired Apple & Eve who also develops and sells juices and drinks, but this time, nationally. Revenues then reached a high of $ 1.51 billion in 2016 (Lassonde, 2018). In 2017, the management teams of the two subsidiaries were combined (Lassonde, 2018).
Juice consumption is declining (Mintel, 2017) and Canadian population growth is very low, it would only be normal to see the Quebec giant seek to acquire other US companies. This would allow them to get closer to their American customers and thus reduce the costs associated with the transport of their products. In addition, a new US acquisition could allow them to increase their purchasing power on concentrates, an essential element for survival in this type of industry.
Historique de Lassonde, fabrication alimentaire depuis 1918, Lassonde Inc. Retrieved http://www.lassonde.com/a-propos/histoire/#1918
Présentation corporative Janvier 2018. Lassonde Inc. Retrieved from http://www.lassonde.com/wp-content/uploads/2018/01/Pr%C3%A9sentation-corporative-Janvier-2018.pdf
Industries Lassonde inc. complète l’acquisition de Clement Pappas and Company, Inc. Lassonde Inc. (2013, April 02). Retrieved from http://www.lassonde.com/actualites/2011/08/industries-lassonde-inc-complete-lacquisition-de-clement-pappas-and-company-inc/
Juice in Canada (2016) – Market Sizes. (n.d.). Mintel. Retrieved from https://store.mintel.com/juice-in-canada-2016-market-sizes