ISRAELI food and beverage maker Strauss Group is setting up a joint venture with Virgin Group’s Virgin Green Fund to sell Strauss Water products in England and Ireland and later on in France, Australia and South Africa.
The joint venture, in which Virgin Green Fund will initially invest $7.5m (£4.8m) and Strauss Water $2.5m, will be based on Strauss’s existing drinking water operations in England, Strauss said yesterday.
Following the investment, Strauss will own 58 per cent of the joint venture and Virgin will hold 42 per cent.
Virgin Green Fund has an option to invest another $6.2m while Strauss can invest another $3.8m, which would bring Strauss’ stake to 51 per cent and Virgin to 49 per cent.
Under the agreement, Virgin will grant Strauss Water a 30-year licence to use its brand name for marketing and sales in exchange for royalties to be paid by the joint venture, which will purchase products and services from Strauss Water.
Strauss Water makes drinking water solutions that purify and provide hot and cold water for in-home and away-from-home markets.
Strauss, the second-biggest food company in Israel, is the world’s sixth-largest coffee firm.