After a blowout first quarter which saw net profit spike by 57 per cent to $258 million, consumer and pharmaceutical distributor Lasco Distributors Limited (LDL) is looking to propel its current prospects to new heights. The company is now seeking new means of reaching consumers in the novel coronavirus pandemic.

Speaking at the company’s recent annual general meeting deputy chairman and acting managing director of Lasco Distributors James Rawle posited that the company’s most recent quarterly success was based on the rapid response of the team prior to the COVID-19 outbreak in Jamaica and subsequent protocols.

“Towards the end of February when we heard about the epidemic in China, we got in touch with our main suppliers of raw materials and finished products. We encouraged them to send us supplies from early. We lined up the materials very early and it paid off, as we had some very good months of sales.

“With respect to the distribution side, we loaded trucks and kept people overnight on premises so when the curfew was lifted, they were able to go out very early in the morning. It took a little organisation, but it worked. We had van sales going into lockdown communities and supplying consumers with products,” Rawle shared with Sunday Finance.

This comes in the face of the company’s traditional marketing channels, such as in-store sampling and promotion outside of small shops, being heavily impacted by social distancing protocols which are aimed at limiting crowding.

Despite this hurdle, LDL begun ramping up its social media and traditional communication media to reach more consumers. These initiatives include defending market share for the company, improving branding displays along with branded offers at supermarkets and targeted radio advertisements at key time signals when listeners are usually tuned into the news.

“We have a social media strategy and it’s now being reviewed with an audit to see how effective we are. A lot of people think being on social media is just putting something there.

“Social media is complex and it’s not just putting up a photo of our promotion. It’s how you engage consumers with the brand. During the year, we continued to invest considerable amounts in marketing support for all of our brands,” Rawle said.

As part of its new strategic objectives, Lasco Distributors will be deepening its distribution footprint and launching new products in its branded product portfolios along with sub-brands. This will also include a 62,000-square foot expansion of its existing space at the White Marl location for its Consumer Division and a 20,000-sq ft expansion of the pharmaceutical warehouse space at its Red Hills Road location. The cost for the expansion has been estimated at US$5-6 million ($707.3 – $848.8 million) with the company still sourcing partners for the project.

“We have to find novel ways to communicate and engage the consumer. A lot of distribution companies tend to focus on the relationship between the customer and the distributor. The customer is the vehicle through which you get to the consumer. You must have the consumer open the doors and looking for your Lasco brand. Growth will only come from aggressive product innovation. We need to innovate in both brands, launch new products and we have a staple of new products to launch,” stated Rawle.

The company intends to launch a new food drink product this month plus increase its exports across the region to key markets. Some of the planned products for the year have been shelved due to the current economic climate. Even in light of this, tea and hot beverage sales have increased substantially under its Lasco Instant Chocolate brand plus the Salada Foods products which the company distributes. However, growth in markets such as New York and Barbados have been phenomenal as both economies slowly reopen with the latter having better success as a regional player. The Guyanese market still remains a tricky place to do business for the company, following the three-month election stand-off in the South American country which began exporting oil earlier this year.