FOLLOWING a decline in tourism activity and hurricane-related disruption to its operations, Caribbean Producers (Jamaica) Limited (CPJ) is turning to retail sales and exports to drive growth.

The Montego Bay-based company incurred US$11.10 million in inventory losses during 2025, along with damage to its warehouse facilities caused by Hurricane Melissa. It also recorded US$2.14 million in impairment losses on trade receivables because of disruption faced by customers in western Jamaica. CPJ also had more than US$24 million in insurance claims accepted for inventory losses, property damage and business interruption, helping it report net profit of US$10.79 million for the year.

The spillover effect of the hurricane has shown up in 2026 as CPJ’s consolidated revenue for the three months ended March 31 fell 28 per cent to US$33.14 million. The reduction in revenue was attributed to the decline in commerce within the hospitality sector, which accounted for almost two-thirds of its US$119.38 million Jamaican revenue in 2025. The hospitality sector has been affected by reduced hotel capacity, lower occupancy and fewer flights to Jamaica.

“Many of our hospitality partners are still operating under below-normal circumstances and capacity. A full recovery for some of them might stretch into late 2026 or early 2027,” said interim Chief Executive Officer (CEO) Juan Baez at CPJ’s July 29 annual general meeting (AGM) at the Terra Nova All-Suite Hotel.

Baez took over as CEO of CPJ in September 2025 following the departure of Nicholas Hospedales who returned to Trinidad to become ASBH’s head of warehouse & distribution hub.

With the outlook being muted by the reduction in tourism numbers, CPJ will be deepening its integration into the Seprod Limited and A S Bryden & Sons Holdings Limited (ASBH) ecosystem. CPJ is a 79.99 per cent-controlled subsidiary of the Trinidadian-based A S Bryden which, in turn, is an 80 per cent-controlled subsidiary of Seprod. A S Bryden acquired its majority stake in CPJ between July 2024 and February 2025.

“By leveraging the regional logistic, distribution, and procuring capabilities, we have positioned CPJ for the massive growth. This partnership creates meaningful potential for our [business] to expand our reach in the retail trade and to accelerate our export opportunity across the Caribbean,” Baez added in his remarks.

The company completed its enterprise resource planning (ERP) system roll-out during 2025 after a difficult integration process. This integration became key for Seprod and ASBH to connect CPJ to the wider group strategy.

Seprod CEO and CPJ Chairman Richard Pandohie pointed out that some products imported by CPJ are now stored at a Seprod warehouse in Kingston instead of being driven to Montego Bay and back to Kingston. The integration process has also seen Facey Commodity Company Limited, a Seprod subsidiary, consolidate its Montego Bay warehouse with CPJ to optimise costs and reach.

He even pointed out that some brands that were previously distributed by Facey to hotels are now handled by CPJ which becomes the single contact point for hotel clients. CPJ previously had 11 to 13 tea brands, but it now has the Twinings tea brand which Pandohie described as being way larger than the multiple brands.

“It’s a premium brand and we’re growing that and we’re growing the distribution footprint. I mean, our thing is about coverage, about being everywhere and having our product everywhere consumers can see it, taste it and feel it,” Pandohie noted on the growing presence of CPJ across the marketplace.

CPJ will now seek to build on its retail business, which generated US$43.18 million in Jamaica and US$64.57 million on a consolidated basis, including the St Lucian subsidiary. Exports generated US$120,343 in revenue during 2025.

The company was scheduled to make its first export shipment of bacon and hamburger patties to Barbados at the end of July and plans to distribute slush and regular juices in the Eastern Caribbean.

“We will leverage our expanding regional platform to drive stronger exports and deepen our market penetration. We expect to see a meaningful growth with our manufactured product portfolio, even with a temporary dip in demand from parts of the hotel sector,” Baez added.

CPJ (St Lucia) Limited, a 51 per cent controlled subsidiary, reported US$33.85 million in revenue and US$745,845 in net profit during 2025. While it reported a loss of US$111,659 during the first quarter, the CPJ chairman explained that some business lines would be reduced, with the company planning to expand its warehouse in short order. Rakeesh Bernard, ASBH’s CEO of its Barbados and St Lucia business unit, oversees CPJ St Lucia after taking over from Gerard Conyers.

“We’re using the bandwidth of the group to create opportunities for all the subsidiaries, and I mean what you’re going to see going forward is that we’re very bullish on St Lucia and the Eastern Caribbean in general. I mean, we see huge growth opportunities there,” Pandohie noted on the opportunities in the Eastern Caribbean.

Pandohie added, “They’re tourist-driven economies and we know this business well and we’re going to leverage our skills and our expertise across those markets.”

CPJ reported a consolidated net loss of US$1.17 million compared to a net profit of US$1.81 million in Q1 2025. Despite the net loss, the group had US$5.26 million in operating cash flow as it collected more than US$5.48 million in trade and other receivables. The company’s next quarterly report is due by August 14 and will allow shareholders to understand the recovery of CPJ’s hotel market.

CPJ’s consolidated asset base dipped 10 per cent during the quarter to US$113.16 million with cash and cash equivalents of US$8.06 million. CPJ’s total liabilities decreased 15 per cent to US$62.39 million with long-term debt of US$20.34 million and US$11.50 million in short-term loans. Equity closed at US$50.77 million, with US$47.54 million attributable to shareholders.

CPJ’s stock price closed Tuesday at $5.03, which leaves the stock down 34 per cent with a market capitalisation of $5.54 billion. ASBH CEO John De Silva was elected as a director of CPJ. All resolutions were approved by shareholders, including the authorisation for the directors to appoint the company’s auditors. CPJ currently uses PwC, while its direct parent ASBH uses EY.