Kintyre expanding into ice manufacturing
KINTYRE Holdings has set its sights on entering the ice market, with plans to start manufacturing the product before the end of this quarter. The company is also scaling up the operations of its digital advertising subsidiary, Visual Vibe, through a strategic partnership with NGAP Limited.
Tyrone Wilson, chairman and CEO of Kintyre Holdings, told the Jamaica Observer that the company’s decision to enter ice manufacturing was driven by the country’s current ice supply issues. These challenges emerged following a fire last November that destroyed the manufacturing facilities at Pure National Limited, the dominant player in Jamaica’s ice market.
“We’ve been looking at it since during the Christmastime, and we were able to pull together an investment very quickly to really get this thing going. So, we’re looking to fully set up in February so that we can start maybe around March,” Wilson told Sunday Finance.
Wilson in a press release said the ice manufacturing will be done through Sevens Kingston Limited, the operator of Sevens Ultra Lounge and Restaurant, with the ice to be called Sevens Ice. Kintyre Holdings, the release said, has acquired an associate stake in Sevens Kingston for US$300,000, with some of that fund to go towards starting the ice making venture. Wilson declined to give a break out of the investment, but said some of it was paid for with an equity stake in Kintyre Holdings.
He, however, said Sevens Ice has already secured a distribution point in Kingston and is in the process of setting up another in St Catherine.
“We have a cold storage, we’re in the process of ordering the trucks for delivery. We’ve ordered the machines already to do the ice manufacturing. We have a general manager in place and we’re hiring the line staff, who will be assisting with the packaging and distribution and so forth. So, it’s a timely opportunity for us and it’s one that has become an integral part of our strategy,” Wilson said.
Nicole Masters, a marketing and sales professional, has been appointed general manager to oversee the venture.
Wilson added that the manufacturing facility will be able to produce 15,000 pounds of ice per day at inception with the hospitality market being the main target. But he said the company has also initiated talks with the Government to secure a licence to import the product to supplement its output.
“Certainly it is a long-term play for us. Our objective here is to capture market share that is long term, that is sustainable. We have a strong network already throughout our company. A lot of businesses, especially events that we deal with through Visual Vibe on our screens, we interact with them daily. So we’ve already had some of these customers within our reach, so it was an easy sell for us to reach out to a number of them to get certain agreements. We won’t disclose the names now, but we have a number of restaurants and events that we have on board already.”
Pure National Limited is expected to resume production in the summer, but is now importing the product to meet demand, especially for party ice. May Pen Ice, the other local producer, produces block ice.
Still, the manufacturing and distribution business are not the only areas Wilson is looking to expand Kintyre Holdings into.
The company, through its Visual Vibe subsidiary, recently entered a partnership with NGAP Limited — a digital advertising company based in Portmore, St Catherine — that will resulting in a 40 per cent expansion of its digital screen network across Jamaica.
“They have a number of screens, a strong network in Portmore and a few other screens that have recently been imported. Instead of going it alone, those screens will become part of our network, and when I say part of our network, it will be a part of our technology framework, meaning the ads will be now served through us. Our team will be selling the advertising. Our team will be managing the maintenance. It’s almost as if it’s now a part of Kintyre,” Wilson pointed out.
Visual Vibe currently operates about 13 screens outdoors in towns across Jamaica and is also breaking into the indoor screen advertising market. NGAP Limited currently operate two screens in Portmore and is acquiring another three, which Wilson said will be placed in Liguanea, St Andrew and Montego Bay, St James.
“The priority now is to grow Visual Vibe as quickly as we can to make this partnership work. We have another one coming on. We haven’t signed off as yet but we have another major location coming on from another strong company that is not necessarily in the digital billboard advertising space but they’ve acquired a location that is very attractive and they’re looking to come on.”
