Kremi undergoing $10-m packaging upgrade, headed for more store shelves
Kremi ice cream maker, Caribbean Cream, plans to spend $10 million on upgrading its packaging over the next two years.
The new look, which was debuted at EXPO Jamaica 2014, is expected to help boost sales in the retail, supermarket and convenience stores .
"In our opinion, we could have been doing better, so the rebranding will help with sales," said Christopher Clarke, CEO.
Caribbean Cream ended its most recent financial year, which ended February 28, 2014, with 27 per cent higher revenue, or $856 million, compared to $676 million the year before.
Net profit rose from $14 million for the year ended February 28, 2013, to $40 million in the most recent financial year, albeit the company paid no corporate tax in the latest financial year as a result of listing on the Jamaica Stock Exchange Junior Market, while it paid out $7.3 million to the Government the year before.
Rebranding is expected to help push Kremi on to supermarket shelves.
The ice-cream makers sales predominantly come from its mobile distribution segment — bike vendors and scoop shops — accounting for 80 per cent of its revenues.
Caribbean Cream has also hired a chief marketing officer, David Ranlein, who Clarke says has the ability to market the company's products.
There was also additional staff, which is reflected in the increase in administrative expenses.
"During the history of Kremi , we never spent much on advertisement and promotion, but relied on the product selling itself," said Clarke.
What's more, the company will launch an additional a line of pint size ice-creams to the market.
Increased sales during the period under review was as a result of acquiring a larger share of the ice-cream market, said Clarke.
"Our gross profit margin increased because we were able to sell more of our higher margin items," he said.
Gross profit of $201 million for the year ended February 28 translated into a gross margin of 24 per cent, compared to the 19 per cent gross margin derived from gross profit of $130 million the year before.