Derrimon Trading to invest $100 million in new store, new brand
Derrimon Trading Company Ltd (DTL) has launched a new supermarket brand which is significantly different from its current Cash & Carry Sampars stores which offer wholesale shopping of food and consumables.
The company said on Friday March 17 — by way of notice on the Jamaica Stock Exchange (JSE) — that it had established a joint venture company for the acquisition of the assets of Caribbean Home Entertainment Systems, the former operators of Carihome Supermarket at Shop # 15 at Upper Manor Park, St Andrew.
Derrimon said negotiations have not been fully finalised, and in the interim, a five-year lease has been secured with Jamaica Property Company Ltd (owned by PanJam), the owners of the facility.
The facility is being refurbished and will operate under the Select Grocers brand.
Meanwhile, Derrimon has also signed an agreement with Chris Ryan Ltd, the operators of Empire Supermarket at 1-3 Retirement Road for the purchase of the assets of that company. The business will be rebranded under the Sampars brand.
Acquired by Derrimon in 2009, Sampars Cash & Carry chain currently operates six retail outlets along with a distribution hub located at Marcus Garvey Drive in Kingston.
The chain, which has almost doubled in size since acquisition, also retails online.
Derrimon indicated that the new acquisitions are part of a five-year strategic plan.
Managing director Derrick Cotterell told the Jamaica Observer that the Manor Park renovation will cost more than $100 millon, including new refrigeration and deli equipment.
“Manor Park will not be a Cash & Carry. It will be a full- service supermarket with great value and great offerings, including a fabulous deli with a wide variety of offerings,” he said.
The company in February concluded an additional purchase of 26 per cent shares in manufacturer Caribbean Flavours and Fragrances (CFF), increasing shareholding to 75 per cent.
It paid $4.50 per share for 23,379,208 units sold by the company’s original founders, Anand James and Dr Joan James.
Cotterell told Sunday Finance that the company was benefiting from the low interest rate environment.
“We continue to work with our financial partners to find the best solutions and provide us with the best options for all our expansion plans,” he said.
The company in its last quarter accessed a 10 per cent loan from Proven Investment Ltd to repay some long-term liabilities and provide cash for acquisition of additional CFF shares.
Derrimon, the parent company which is listed on the JSE along with CFF, is mainly engaged in the distribution of bulk household food items inclusive of meat products.
The company also distributes branded products on behalf of Nestle and Sunpower, alongside operating wholesale distribution company Sampars Cash & Carry.