Salada pushes the envelope on Caricom and other markets as it targets higher exports

 

 For the financial year ended September 30, 2024, coffee and tea manufacturer Salada Foods Jamaica Limited grew revenue to J$1.48 billion, up six per cent. Growth year over year was driven by an upsurge in domestic and export markets.

Operating profit for the year ended climbed by nine per cent to $227 million compared to $209 million in the previous financial year.

Net profit attributable to shareholders was $194.3 million compared to last years $164.5 million, a difference of 18 per cent. Shareholders are slated to receive an interim dividend of $0.60 on December 23, 2024.

Salada’s domestic sales increased 8 per cent driven by increased consumption of the company’s non-coffee products under Mountain Peak brand, including Golden Turmeric Latte which was added during the year.

For the new financial year, emphasis is also being placed on exports. General Manager Tamii Brown told Caribbean Money Daily, “Our revenue growth strategy for the upcoming fiscal year focuses on three pillars: sustained product innovation, regional market expansion, and operational efficiency. Following the success of the Golden Turmeric Latte, we plan to leverage consumer insights and rigorous testing to introduce new, market-driven products under our flagship Jamaica Mountain Peak brand and private labelling for leading regional distributors."

Brown said that Salada would, additionally, " intensify our penetration in key CARICOM markets, including Trinidad, Barbados, and Antigua, while maintaining strong momentum in the domestic market. This approach builds on our 6 per cent year-over-year revenue growth for FY 2024, driven by an 11 per cent increase in export sales and an 8 per cent rise in domestic sales.”

Turmeric Latte, one of the newer products placed by the company is a blend of turmeric and plant-based creamer. Another of its newer products, a  flavoured coffee line includes cinnameg, a blend of cinnamon and nutmeg flavours, coconut cappuccino and caramel has made inroads on Amazon, boosted by the Caribbean Diaspora market.

It was indicated that the coconut cappuccino flavour leads sales across the line. Overall, export sales grew by double digits, Salada’s recent report stated, due mainly to the company’s expansion in Caricom markets including Trinidad and Tobago, Barbados Antigua and Barbuda and St. Lucia,

In the quarter ended June 30, 2024, Salada’s w Golden Turmeric Latte product resulted in a 46 per cent jump in revenues.

The produce made inroads in the in the domestic market and also led portfolio in sales for Trinidad. Demand also grew for the flagship Jamaican Mountain Peak Instant Coffee line, as the company ramped up arrangements with distribution partner, LASCO Distributors Limited. Marketing also increased efforts.

Salada’s products are also available in US retailer Publix Supermarkets in Florida. The move in 2024 represented and an expansion of Salada’s North American markets, as it is already in the tri-state area of the US and in Canada.

The company is hoping to increase output of its coffee product by securing more raw coffee, an issue which it is discussing with the Jamaica Agricultural authorities as well as the Jamaica Coffee Growers Association (JCGA) to

Brown commented, “A significant challenge remains ensuring a stable supply of Jamaican coffee amidst industry-wide constraints. To address this, we continue to collaborate closely with the Jamaica Agricultural Commodities Regulatory Authority (JACRA), the Ministry of Agriculture, and other stakeholders to explore sustainable solutions.

“Operationally, we are enhancing throughput and efficiency at our manufacturing facility to maintain our 7 per cent improvement in gross margins. On the marketing front, we will strike a balance between traditional and digital strategies to maximize return on promotional investments.”

At year end September 30, 2024, the company reported that selling and promotional expenses climbed marginally to five per cent, up from 4.8 per cent with the increased costs due to launch activities for new additions to its product portfolio.

Brown did not disclose new products being tested but commented, “We are committed to continuous innovation informed by consumer research and collaboration. While it is too early to disclose specific details, new product developments are underway, inspired by the recent successes of the Golden Turmeric Latte and our Flavoured 3-in-1 Coffees.

"Our focus remains on crafting offerings that resonate with consumer preferences in both local and export markets. Additionally, through collaboration with leading regional distributors, we will formulate and manufacture product innovations under their household brands, effectively expanding our private label service.”

 

Caribbean Money Daily

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