Salada to launch new coffee products
Company on drive to launch new coffee products Salada revival A collectionTuesday, February 03, 2015
BY STEVEN JACKSON Business reporter firstname.lastname@example.org
THE makers of Mountain Peak Instant Coffee aim to launch new coffee products this year, according to Salada Foods Jamaica Ltd statements.
The move comes within the context of increased local coffee competition in both the instant and brewed markets.
"We strongly believe that creating new value for our customers is imperative to the success of the company, and with this in mind, in the upcoming year Salada will re-energise and revitalise our coffee category, providing our customers with new and improved products in the market space during the year," stated the then Acting Managing Director Keshia Nelson-Brown in a statement accompanying the annual report 2014.
The annual report avoided disclosing additional information on the products. In late December, Salada advised that Jerome Miles would "replace" Nelson-Brown and commence work on January 5, 2015 as general manager.
Last year, large coffee company Mavis Bank Coffee Factory Ltd launched True Brew, an instant coffee. It also launched Jablum Caribbean Blend, a mixture of beans from Jamaica and the Caribbean. In 2012, it also launched a high-end product called Jablum Gold.
"Within the year we were faced with several challenges, including the depreciation in the Jamaican dollar, the reduced purchasing power of the buying public and heightened competition. Despite this, we were able to improve the performance of the company and thus, shareholder value," stated Nelson-Brown.
Salada made $96.6 million net profit from $736.3 million in turnover, or just about one-quarter higher profit year-on-year. Turnover jumped 16 per cent year-on-year, mainly due to increased marketing and increased distribution channels.
"Additionally, there was a slight increase in export sales and local sales of Mountain Peak Food Processors products," stated Salada Chairman John Bell in his statement accompanying the financials. Local sales hit $588 million, in addition to export sales at $139.8 million. Bell also noted that Salada made recent contract deals to manufacture its pimento briquettes which are used as a wood fire source.
"In terms of future operations, we have recently sewn up several arrangements for contract manufacturing, which we expect to enhance our bottom line in the near future. We have also, during the year just ended, made an investment in acquiring 70 per cent ($26 million) of the equity of Pimora Company Limited, which has developed a new and innovative method of producing briquettes using indigenous pimento leaves and twigs. This innovation preserves the pimento trees, forestry and the environment. Diversification into other plants and herbs is also planned," stated Bell.