Wed | Jun 26, 2019

Jamaica Standard Products adds quick serve product lines to bolster sales

Published:Sunday | January 21, 2018 | 12:00 AMAvia Collinder
Island Blue coffee capsules.
Jolly Rancher slushy machine

Coffee processor Jamaica Standard Products Company Limited will begin retailing single serve coffee capsules under the Island Blue and High Mountain brands this year, according to General Manager John O. Minott, who is looking to reinvigorate volume sales.

The company is investing US$100,000 in equipment and packaging for the single serve capsules, which are to be sold from five stores operated by Standard Products on the north coast, he said.

"Many households in Jamaica already have the single serve machine. Now they will be able to get their capsules locally," said Minott.

That project will follow Standard Products' venture into another niche segment of the frozen treat market, fruit slushies, which are dispensed from machines deployed by the company through convenience channels.

The slushy drink machines serves five Jolly Rancher flavours of cold drink raspberry, watermelon, strawberry and green apple and represented an investment of US$60,000, Minott said.

He is expecting sales over the next two years to increase by 10 per cent to 15 per cent, based on these new initiatives. He adds that while revenue grew about 10 per cent in 2017, volume sales were fairly flat for the company.

Standard Products trades Jamaica Blue Mountain and Jamaica High Mountain coffee, is a producer of sauces and spices, and the owner of trademarks Baronhall Estate, Baronhall Farms and Island Blue.

The company began its product diversification programme in 2015 when it began deploying coffee-brewing machines through its retail channel. The segment is dominated by Nestle Jamaica, but Minott said the market comprises various types of the quick service machines.

Minott estimates that he has picked up 10 per cent market share in the coffee machine segment - a niche he estimates to be valued overall at US$5 million - and that this year he wants to grow Standards Products' share to 15 per cent.

"Our product offering is comparable with Nescafe's which would be considered the leading provider in Jamaica, of this type of service," said the GM. "The feedback from our customers has been favourable relative to the taste profile of the three flavours we currently offer."




Minott said the coffee machines also represented a US$100,000 investment when they were rolled out two to three years ago.

"We wanted to diversify the company in many areas and we noted that this segment of providing quick service coffee products to the market was growing as people, due to their busy schedules, sought more convenience in the various products offerings," the coffee processor said.

The company is aiming to increase distribution of both the slushies and coffee machines through convenience stores. Minott says he wants to grow volume sales to drive profit.

"The margin from these products is low - it is the volume that creates the value. The fact that we offer various coffee products is an advantage to enhance our bottom line, as customers interested in automated coffee will likely purchase other coffees manufactured by JSP. In this manner, the company's margin will increase," he said.

Standard Products was founded in 1942 by Leslie Minott and taken over by John's father, Jackie Minott, in 1972. It operates retail stores in Montego Bay and Ocho Rios, and exports green coffee beans to places such as Japan, China, United Kingdom, United States, Canada as well as European countries.

The company operates a 15,000 square foot factory in Williamsfield, Manchester and plants over 350 acres of coffee in both the Blue Mountains and high mountain ranges of Jamaica.