Consolidated Baking Company, which trades under the Purity brand, is still on a quest to find the ideal product mix that will fuel its next phase of growth amid growing competition in the bread market.

While the company has made strides in shifting its business model from the core bread production, Chairman and Managing Director Anthony Chang admits that Purity’s current portfolio mix is not yet delivering the desired impact on overall sales.

“We do have a good portfolio of products. Based on market response, customers appreciate the products that we have launched. There is growing demand…but if you look at the percentage of sales of the products outside of bread, they are still not where we want it to be,” Chang told the Jamaica Observer in an interview following the company’s annual general meeting on Wednesday.

Bread sales still account for a significant percentage of Purity’s total revenue, but that market segment has been challenged in recent times by low margins and growing competition as industry players search for growth opportunities in what is said to be a “mature” market.

The sweet spot for many has been shorter breads — 16oz or half the size of the traditional hard-dough bread. However, instead of playing catch-up with competitors, Purity has opted to expand its portfolio.

Its latest product is a protein snack — Vybez Bar — which is produced under the Miss Birdie brand.

“We have more distribution points, and while sales have improved, as a percentage of overall sales, it’s still a small number,” Chang explained. “We need to grow that.”

Chang declined to disclose the new ratio in overall sales it has set for bread which once accounted for all its revenues; however, he said the segment’s contribution has declined over the past four years.

The company — which is in the business of making bread, biscuits, buns, pastries, and snacks — posted a loss of $22 million for the second quarter ended June 2024 on lower revenues and rising expenses.

Chang said much of the rise in expenses were attributable to higher salaries, selling and distribution expenses as the company works to grow sales of new product lines and select products it has been producing for more than five years.

Since 2020 Purity has come to market with the Miss Birdie Rock Cake and the Miss Birdie Amaaazin Cinnamon Raisin Loaf.

Looking ahead, Purity plans to continue expanding its distribution network and introducing new products to the market. “You can expect to see a couple more products in the next few months, but at the same time, we have to drive sales for the ones already on the market,” Chang hinted.

But in the interim the company is focused on driving sales of products already on the market.

“We made the adjustments in our business model, but now we need to fuel that growth. We have strategies to fuel that growth, but we also need to put some fuel behind them and that is talent, management, processes and other resources. That is what we are working on now, and we are confident that it will come overtime,” Chang told the
BusinessWeek.

Talent acquisition remains a significant challenge for Purity, as it does for many companies in the private sector. The company has had to rethink its approach to the market, adjusting its HR and route-to-market programs to better align with current realities.

“Getting the right talent, from truck drivers to salespeople, is crucial,” said Chang. “We have started to see some improvements, and we expect things will get better as we overcome these challenges.”