SEPROD PUSHES DEEPER INTO TOURISM SUPPLY CHAIN
CPJ and Facey repositioned as company expands across hospitality and retail channels
More Seprod products are now moving through Caribbean Producers Jamaica Limited’s (CPJ) hotel network, while imported CPJ goods once tied closely to the tourism distributor are increasingly finding their way into supermarkets and on retail shelves through Facey Commodities.
The changes are part of a broader restructuring now unfolding across Seprod’s distribution system as the group accelerates the integration of CPJ into its wider operations following Hurricane Melissa.
“We started the transition in late January. The broader integration plans were already in place before the hurricane, but we wanted to avoid disrupting business in the peak season, which is typically October through to December. Since then, Seprod products have increasingly been marketed through CPJ’s hospitality channels, while CPJ products have been moving through Facey’s retail distribution network,” Seprod Group Chief Marketing Officer Andrew Anguin told the Jamaica Observer.
The integration push comes more than three years after Seprod acquired AS Bryden & Sons Holdings Limited, CPJ’s parent company. The group is now tightening links between its hospitality and retail operations while deepening its reach into the tourism supply chain.
Under the restructuring, CPJ is being sharpened as the group’s hospitality-focused arm, concentrating heavily on hotels and restaurants, while Facey Commodities — Seprod’s retail distribution business — takes on a larger role distributing imported and consumer-facing products previously handled through CPJ.
Executives believe the changes could eventually generate low double-digit growth across both sides of the business.
“Low teens is what we are anticipating on both sides,” Anguin said, while cautioning that the integration remains in its early stages. “But again the upside is huge with a larger team focused everyday on what they specialise in.”
While the broader integration strategy predates Hurricane Melissa, executives say the storm accelerated execution as weaker hotel demand and operational disruptions exposed opportunities to streamline overlapping distribution systems and widen sales coverage across the group.
“What this really allows us to do now is our CPJ team … is fully focused from a sales perspective on selling the entire Seprod portfolio into the hospitality customers,” Anguin said.
“We’re now able to bring more hospitality-focused innovation into the market through our Kraft Heinz relationship, including specialised formats, more competitive pricing and products tailored for commercial kitchens. We’re also expanding innovation around oils and fats to better serve the hospitality sector’s baking and food preparation needs,” he added.
The reverse is also happening. Imported products and manufactured goods once sold mainly through CPJ’s channels — including items such as shrimp and burgers — are increasingly being distributed through Facey’s retail network instead.
The shift comes as CPJ continues to grapple with the uneven recovery of Jamaica’s tourism sector following Melissa, which severely disrupted parts of the island’s hospitality belt.
“Many of our partners within the hospitality industry are either not yet fully operational or are operating at reduced capacity as they continue their recovery efforts,” Chairman Richard Pandohie and interim CEO Juan Baez said in the company’s management discussion and analysis (MD&A).
“Several have indicated that full reopening timelines may extend into late 2026 and, in some cases, into the first quarter of 2027.”
For decades, CPJ has been one of Jamaica’s dominant hospitality suppliers, distributing food, beverages and speciality products to hotels, restaurants and cruise operators. The integration now underway effectively gives Seprod a more direct route into that market while allowing the wider group to spread products across a broader retail footprint. The restructuring is also helping to remove longstanding inefficiencies within the distribution chain.
“It gave us way more coverage across the portfolio. So, more people, more brands, selling the full portfolio of CPJ products,” Anguin said.
Management expects much of the integration work to be substantially completed by the final quarter of this year, when the winter tourism season and stronger Christmas demand are expected to support both hospitality and retail sales.
“We’re anticipating starting Q4 … we’re going to pick up strength there,” the marketing exec said, pointing particularly to CPJ’s premium beverage portfolio, which typically performs strongly during the year-end period.
The operational overhaul comes as CPJ’s March quarter results reflected the continued pressure facing tourism-linked businesses after Melissa. According to figures outlined in the MD&A, gross revenue declined to US$25 million from US$37.8 million a year earlier, while gross profit fell to US$6.5 million from US$11.7 million. The company also swung to a pre-tax loss of US$1.4 million compared with a profit of US$2.4 million in the corresponding quarter last year.
Still, the company pointed to improving operational cash flow and tighter working capital management as signs that the restructuring is beginning to gain traction.
“Importantly, the quarter reflected improved cash flow performance and stronger working capital management,” management said, citing lower inventory levels, insurance recoveries, improved collections and tighter control of payables.
Andrew Anguin, chief marketing officer for Seprod Limited.