LARGE coffee processor, Wallenford Coffee Company increased its prices nearly 30 per cent effective this month.

What’s more, Michael Lee-Chin point man Mark McIntosh appears to have taken over the reins of the company, according to two independent sources who indicated that he assumed the role of CEO.

George McPherson, the CEO up to the time the company was taken over by Lee Chin, and McIntosh, officially vice-president of Portland Holdings (the parent of AIC Investments), separately indicated no comment when contacted on price and management changes.

“Mr Lee-Chin took possession on September 13 after start of crop year, but the transaction won’t be closed for a few months, so he’s supporting current staff with the current structure to ensure no interruption,” said one source. “George McPherson still leads day -to-day operations. Major hiring/restructuring/job role decisions will happen over time.”

It’s Wallenford’s first price hike in years, and it will have a direct impact on Jamaica’s coffee export earnings based on the company’s size.

A reliable source told the Business Observer that the new pricing better reflects Wallenford’s “high quality and gap in taste and experience profile between Wallenford and other coffees”.

“Leather is just leather, but Louis Vuitton and Prada take that leather and craft it into something priceless,” said the source. “Blue Mountain coffee is like the finest, rarest leather. Wallenford picks the best of it and crafts it into a priceless experience.

“Like Louis Vuitton, it is produced in limited quantities, available in limited outlets, and is expensive.”

The move will increase revenues at the loss-making entity provided it can maintain orders in a price sensitive market.

The price for a typical eight ounce bag of Jamaica Blue Mountain roasted beans will now cost the equivalent of some $1,400 compared with some $1,100. The prices will also now be quoted in US dollars, according to a management notice obtained by the Observer.

“Settlement in Jamaican dollars will be at the rate prevailing on the day of purchase,” the notice said. “The management of Wallenford Coffee Company Limited take this opportunity to thank you for your continued support and do hope we will continue to work together to strengthen our mutual interest to build a stronger Jamaica.”

The Coffee Industry Board of Jamaica, which regulates the sector, did not immediately return comments up to press.

In September, the Government announced the divestment of the company to the Michael Lee-Chin controlled outfit AIC Investments for US$16 million.

The deal will see the new owners pump an additional US$23.5 million into the factory and coffee farms over the next four years, gives AIIL access to over 5,000 acres of coffee lands and the capacity to process over nine million pounds of coffee in its facilities.

Wallenford, starved of investment reportedly accumulated losses of US$23.6 million since 2004 and held net assets of $67.75 million as at February 28.