FONTANA Limited is placing greater emphasis on its expanding beauty, skincare and fragrance portfolios as it seeks to diversify its revenue streams beyond pharmaceuticals, which continue to account for the bulk of its earnings.

The pharmaceuticals retailer has steadily broadened its product offerings in recent years to capture a larger share of consumer spending, capitalising on growing demand for international beauty and personal care brands while strengthening its presence in the wellness market.

CEO Anne Chang told the Jamaica Observer earlier this week that the strategy is already yielding encouraging results, with the beauty segment now delivering significant returns for the company.

“Beauty has definitely become a huge part of our overall portfolio and has been driving a lot of growth,” she said, although declining to disclose the respective contributions of the various segments.

Chang said Fontana is broadening its definition of beauty beyond make-up and perfume, two categories for which the retailer has traditionally been known alongside pharmaceuticals. The company’s beauty portfolio now extends to skincare, body care and other products associated with personal wellness.

In regards to skincare, she said this has become a major area of expansion supported a by broader range of products catering to different price points and consumer preferences. These include CeraVe and Cetaphil, alongside higher-end brands such as Vichy and La Roche-Posay from the L’Oréal portfolio.

“We have really been expanding in skincare in a much bigger way over the years, while continuing to offer traditional brands even as we delve deeper into newer and higher-end ones,” Chang said while noting that uptake of the expanded range has been encouraging and reflects growing consumer interest in specialised skincare products and formulations.

In addition to its growing skincare portfolio, Fontana has also strengthened its body-care segment, increasing its selection of lotions, body washes and related products through brands such as Dr Teal’s and Bodycology.

Chang noted that the Dr Teal’s brand has helped to extend the retailer’s reach into wellness, with products targeting relaxation, sleep and self-care.

Fragrances also remain another area of investment in which the retailer has added several premium international brands over the past year, including Yves Saint Laurent, Gucci, Valentino and Miu Miu.

Following the launch of its Ora portfolio in 2025, Fontana has been strategically carving out revenue from these segments as it pushes deeper into the premium beauty market. Ora, housed at three of its locations, now stocks a selection of international beauty brands, including Armani, Ralph Lauren, Lancôme, Prada and Hermès and, more recently, Fenty Beauty.

Alongside the fast-growing beauty and health-care segments, the company also carries an extensive range of home and décor products, although Chang indicated that there is less focus on expanding this division amid increased market saturation and competition.

As the company also looks to unlock more growth from the health and beauty divisions, Chang said management will continue to pay closer attention to changing consumer preferences, social media trends and customer feedback when identifying products and brands to introduce.

She added that while diversification has been creating additional avenues for growth, the company has no intention to move away from its pharmaceutical foundation.

“We are still a pharmacy at our core and that remains our main business,” she stated.

Following the completion of its $854.5-million acquisition of the Monarch Pharmacy chain, Fontana now operates 11 locations across the island.

Meanwhile, Chang is anticipating a stronger Christmas trading season this year as retail activity rebounds from the disruptions caused by Hurricane Melissa last year. Beyond the holiday period, however, she said Fontana will continue to focus on improving its operations and identifying new revenue opportunities, with further developments expected next year.

“We’re always looking to improve and we’re always looking for new avenues of revenue. We never sit back and just flex,” Chang said.

The company is also focused on ensuring it enters the New Year better positioned to capitalise on its expanded platform and opportunities that will improve productivity across the business.

“Our focus for the year ahead is clear: Convert scale into stronger margins, improved operating leverage, higher returns on invested capital and sustainable cash generation, With a strong brand, an expanded network and a disciplined approach to execution and capital allocation, we believe Fontana is well-positioned to deliver sustainable growth and long-term value,” the director said in the company’s recently published annual report.

Anne Chang, CEO of Fontana. (Photo: Garfield Robinson)