JAMAICAN Teas has surpassed its previous export milestones, with sales to Caricom markets now exceeding domestic sales by half.

This growth has been driven by recent investments in production capacity and strong regional demand, positioning the company to increase exports by an estimated 28 to 30 per cent in 2025 to Caricom.

“Our company has now exceeded 50 per cent of our sales of the domestic market, just to Caricom, not within the US,” clarified CEO John Mahfood during its recent annual general meeting. “If we keep at this rate, our total exports will be close to 70 per cent of our sales in total. That’s good, but it would not be as good if Jamaica was performing better,” he added.

Prior to the 2024 financial year, Jamaican Teas had already recorded growth in export sales from its manufacturing segment. Mahfood noted that while concerns persist about the stock market and broader economic conditions, consumer demand in local supermarkets has remained steady. For 2024, manufacturing revenue grew by 9 per cent, led by a 15 per cent increase in domestic manufacturing sales. The company also upgraded equipment in its dry-pack division, adding new technology to improve output, automation, and digital transformation. Overall output rose 66 per cent compared to the previous year. Productivity in the tea factory increased by 71 per cent, and the dry-pack division saw a 66 per cent gain. Export sales grew by 6 per cent. Among its distribution partners, AMCO in Trinidad, accounted for 85 per cent of Tetley trade sales, while Wisynco in Jamaica handled 12 per cent. Total revenue for the year reached $3.2 billion, up nearly 20 per cent. Exports accounted for 68.6 per cent of revenue, with domestic sales comprising 31.4 per cent. The company expects continued growth in 2025 with new products and additional distributors targeting Belize and northern Canada.

“We’re targeting 20 per cent overall growth with even sharper focus on exports. Our goal is to grow by 30 per cent,” said Commercial Manager Johnathan Mahfood.

The company also noted that its recent equipment investments were primarily to boost export volume and improve efficiency. At the same time, Jamaican Teas is shifting its strategic focus back to core manufacturing, responding to shareholder calls to exit real estate and concentrate on export-driven operations. That pivot, first outlined by Mahfood at a previous AGM, includes the planned divestment of the Belvedere apartment complex, where half of the 30 units have already been sold and sales booked for another 11.

“A number of our shareholders said, ‘Look, I like to invest in a pure manufacturing business that is export-oriented,’ and so we started Caribbean Dreams Food in January. So the results for 2024 represent nine months of Caribbean Dream Foods standing on its own,” Mahfood revealed.

Proceeds from real estate divestments are expected to total nearly $1 billion, to be added to the $300 million already raised from the sale of the Bell Road property.

“We are building a cash reserve, and we hope that opportunities come our way to use that to invest further in our manufacturing business, and if the opportunity arises, to invest in other manufacturing companies that have an export orientation,” he said.

The company sold its 22,000-square-foot Bell Road property, where it had been based since 2014, and relocated to a 60,000-square-foot facility in Temple Hall in August 2024. While the sale resulted in a loss, the company broke even on its bottom line.

“The real estate market is very slow, but in time we will get out,” Mahfood told shareholders.

By the end of September 2025, the company expects to report a full 12 months of activity for the subsidiary, Caribbean Dreams Food. This step is intended to support the option of listing a new company focused solely on manufacturing, though Mahfood said plans are still being developed. Caribbean Dreams Food Limited now serves as the manufacturing arm of Jamaican Teas. Mahfood said the aim is for the benefits of these investments and changes to be reflected in higher sales and profits by 2025, along with possible expansion into other manufacturing opportunities.

Caribbean Dreams lemon grass herbal tea produced by Jamaican Teas being packed for the market. (Photo: Naphtali Junior)

Caribbean Dreams Food Limited now serves as the manufacturing arm of Jamaican Teas.

MAHFOOD…if we keep at this rate, our total exports will be close to 70 per cent of our sales in total.