Kremi talks up acquisition of local cone manufacturer
KINGSTON, Jamaica – More than one year since the acquisition of a local cone manufacturing company, Caribbean Cream Limited – trading as Kremi – expects the value added approach to double its sales revenues from cones.
The acquired company, Koni Kone, has been incorporated into the operations of Caribbean Cream Limited and is located at 2A-2C Suthermere Road, Kingston. The cone company was bought for $45 million and, since taking over that business in March 2021, Kremi has made $20 million in additional sales from those products.
“COVID-19 has challenged the reliability of supply chains. Therefore, in looking to the future, we decided to add the production of cake and waffle cones, so we can reduce our reliance on imports going forward. This acquisition will also allow us to increase our sales revenues by introducing the value added products to the local market offerings,” said Ryan Peralto, General Manager of Caribbean Cream.
He spoke of the acquisition at the Annual General Meeting of Caribbean Cream on Tuesday, October 25, held at the Courtleigh Hotel in St Andrew.
The company is in the process of rolling out these products through Kremi depots and its mid-level distributors, as well as third parties.
“This acquisition will help us chart our own destiny, as cones are complimentary to ice cream and this combination can only grow our inflows,” Peralto explained.
In reviewing Kremi’s performance for the first half of the year, Peralto said the company grew in every category and that yielded $222.5 million in additional sales income. Sales from imported novelties grew by $9 million or 51 per cent, while ice cream sold by ‘fudgies’ rose five per cent or $65 million.
According to the Kremi general manager, construction has started on both new cold and blast rooms on land acquired in 2021 at 1 South Road, adjacent to the existing plant. An insulated concrete base is now being cast and the building should start going up soon.
“Our infrastructural developments, which include the upcoming CHP plant, will make us self-sufficient in energy, together with the new cold room, (they) are keys to improved sales, our expansion and expense management objectives,” Peralto noted.
