Honey Bun eyes big exports for mini cakes
Honey Bun’s newest pocket-size rum cake has garnered the attention of customers in Cayman, the United Kingdom and New York, USA.
Chief Executive Officer, Michelle Chong, said the company is now in the process of securing distributors that provide next-day air freighting services to maintain the shelf life of the new rum cake, among other Honey Bun exported products.
“We plan to increase shipment of our Easter bun because we have been shipping just over a container a month between Canada and the UK,” Chong told journalists during the opening of the company’s new factory facilities on Retirement Cresent in Kingston on Thursday. The building, valued at $130 million, was named in honour of the late financial analyst Sushil Jain.
Ultimately, Honey Bun wants to grow revenue through the export market and has added a fourth production line to satisfy demand from the international and local markets.
Yesterday, the company officially opened its 11,500-square feet bread plant, part of which will be used as a distribution facility. The facility is expected to bring a total of 40 additional jobs to the company over the next year, inging total staff to 440.
Chong now has plans to modernise Honey Bun’s cake and doughnut plants, which together, are expected to double the company’s current production capacity.
“I have moved our cake plant from where it is now, which is taking up about 250 square feet and I’m moving it into a 5,000-square foot area. I expect to be pumping out rum cakes in the same way we pump out burger buns. We already have the automation for that, so that should rise quite quickly,” she reasoned.
Recently, Honey Bun added to its production line the cassava muffin and a shorty hamburger bun. The CEO also disclosed that the company is looking at other new products with exportable capacity, but was tight-lipped on the details.
“The cassava muffin will be launched soon. We did a test at expo so we are looking at using raw materials that are indigenous to Jamaica and things that we can export because of the uniqueness. It’s a health product, it has low gluten, raisins and cinnamon,” she said.
By the end of the 2018 financial year, Chong reckons that the company could again get to peak capacity and as such is considering the further investment in new physical factories in addition to the acquisition of smaller bakeries.
Honey Bun has already formed a partnership with small baking company Newtown Bakery, manufacturer of spiced buns, hardough buns, cheese breads, rock buns, raisin breads, cheese breads, wine slices and bullas.
“I’m working with them to develop their food safety programme, so we can build business for them and for us. Growth can happen in many ways,” Chong said.
Honey Bun 1982 Limited produces cakes, buns, bread, and various other pastries, under brand names Goldie, Buccaneer, Island Bites, Honey Bun, Goodie, and Shorty. For the three months ended December 31st, 2017, Honey Bun sales amounted to $323 million representing a three per cent increase in sales relative to 2016. However, profit before tax of $31 million was 27 per cent lower than the $43 million in the corresponding prior year period.