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Salada expands output, product line
Business
BY DAVID ROSE Observer business writer davidr@jamaicaobserver.com  
April 2, 2022

Salada expands output, product line

With export sales picking up at a rapid pace, local coffee processing company Salada Foods Jamaica Limited is venturing into the e-commerce space through Amazon Inc to broaden its market scope and appeal to a wider variety of customers.

Salada is a local coffee processing company with brands such as Mountain Peak instant coffee and ginger tea along with its most recent addition of Mountain Bliss 876. Apart from satisfying the growing local demand, Salada’s export sales grew by 44 per cent to $264.69 million in 2021 and represent 22 per cent of its $1.19 billion in revenue. This was fuelled in part by demand from the United States of America, Canada and Caymanian markets with its new ginger turmeric product gaining significant traction in Jamaica.

As part of its efforts to broaden its distribution network, Salada purchased a new shrink wrap machine to support the endeavour which is backed by its Safe Quality Food certification which was renewed in December.

“The pandemic expedited a ‘new normal’ of doing business which was years in the making. Our consumers are looking for ease and accessibility for their necessities and household favourites. We continue to evolve to meet the needs of our loyal customers. E-commerce, via Amazon and similar digital platforms, is a new and important addition to our distribution network,” stated General Manager Tamii Brown in an e-mail with Sunday Finance.

This comes at a time when global coffee prices are up 80 per cent in the last year to US$2.26 per pound which has put greater pressure on inventory costs. Salada also faces a double whammy with oil prices now up 64 per cent to US$100 a barrel which impacts the fuel costs during manufacturing. However, the removal of government restrictions on the economy have presented an opportunity for Salada to regain more of its consumers at places of entertainment and business.

“Like most local manufacturers, Salada Foods is not immune to the impact of the rising costs of raw materials, which are further compounded by inflated freight costs globally. Improved distribution in existing and new markets remains a critical pillar for growth for us. The gradual relaxation of lockdown protocols and the safe return to work and social gatherings have presented better opportunities for business to thrive,” Brown added.

To this end, Salada has launched three new flavours under its Mountain Peak brand to expand the universe of flavours it consumers have for their products.

“Portfolio diversification is a strategic pillar for Salada. We just launched three new additions to our product portfolio under our flagship brand, Jamaica Mountain Peak. Our three flavoured coffees are Coconut Cappuccino, Caramel and Cinnameg (a delicious blend of nutmeg and cinnamon), which appeal to business professionals who are seeking variety and excitement,” Brown closed.

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