The Food and Drink division of Jamaica Producers Group (JPG) has shown resilience to the pandemic breaking into new markets last year whilst expanding old ones.

During 2020, all of the division’s Caribbean business succeeded in identifying and developing attractive new opportunities for growth in North America. JPG Chairman, Charles Johnston explained, “Although this was not sufficient to overcome the setbacks from COVID-19, the bold initiatives to pivot to these large new commercial opportunities now present a constructive platform for long-term profitable growth.”

The Food and Drink business includes premium and travel retail products, as well as everyday snacks and basic food items, serving markets as diverse as the Caribbean diaspora, Northern Europe and the full range of US cruise and stopover tourist destinations in the Caribbean, Mexico and Florida. Johnson singled out Tortuga, which has secured important new listings in the US market for an extended range of cakes using spirits such as bourbon and whiskey alongside its traditional rum cakes.

The Jamaica Producers Group Chairman advised shareholders that JP Snacks Caribbean experienced growth in West Indian and Latin diasporic markets in the United States. At the same time, JP Farms had steady export growth of bananas to the Canadian market. 

Significant disruptions to customers across Europe

In 2020 the Food and Drink division was affected by increased raw material costs, significant disruptions to customers across Europe that operate in the foodservice or convenience category. This situation was compounded by the general challenges with the efficient management of short shelf- life production and supply chains during the worst moments of the COVID-19 pandemic in Europe.

This was only partially offset by growth in volumes sold to mainstream supermarkets that generally specialise in consumer staples. The JPG Chairman is expecting trading conditions to improve, as lockdowns and other restrictions associated with the pandemic are eased in the second half of 2021.

The division experienced improved productivity and overall results on its banana and pineapple farms in Jamaica. This was offset by significant challenges with distribution and demand in the Jamaican vendor and convenience trade for both snacks and fresh fruit as a result of the COVID-19 pandemic.

All of the group’s food products that depend on Caribbean tourism and sales through travel retail channels (particularly the Tortuga brand and to some extent our fresh fruit) were adversely impacted by COVID-19. The Food & Drink  Division is the largest contributor to the revenues of the Group.

Modest revenue growth of 1% in 2020

The division experienced modest revenue growth of one per cent to $12.7 billion in 2020 but faced a reduction of profits. Profit before finance cost and taxation amounted to $101 million for 2020.

A.L. Hoogesteger Fresh Specialist B.V. is the largest contributor to the revenues and profits of the division. This business is a market leader in fresh juice in northern Europe and serves as a co-packer of juice for major supermarket and food service entities in the Netherlands, Belgium, Scandinavia and Switzerland.