SMALL AND medium sized retailers and traders in St. Andrew are flocking to a recently opened "factory outlet" by Jamaica Flour Mills (JF Mills), which is offering the group's entire range of products at cut rate prices direct to wholesale customers.
The depot/warehouse at the corner of Spanish Town Road and Hagley Park Road has become a popular venue for small and medium sized traders, vendors and retailers looking to cash in on the competitive prices on offer (see chart).
JF Mills is offering customers who spend at least $1,500 using a manager's cheque or cash everything from counter flour, rice, festival mix and Kelly's Syrups in a bid to cash in.
JF Mills boss Jack Cwach said yesterday said: "We need to get in touch with our customers without a filter. This allows us to get a closer feel for the marketplace from the people who buy our products and watch trends in the market directly for ourselves."
Mr. Cwach said the company "still has all its distributors", apparently scotching market suggestions that the company was striking deals with more and more retailers to supply direct. "We are not distributors", Mr. Cwach said.
He said the company had looked at ways of meeting customers' needs but there remained a role for its distributors, which include local powerhouses such as Mussons Jamaica.
The flour maker's chief added that all the company's products were being offered at "low" prices in a bid to attract smaller customers, who would be drawn by the chance to buy direct from the company.
He said the move would probably not suit other areas of the island but was right for that particular segment.
One leading distributor who asked not to be named said: "It doesn't leave much room for us. The prices are simply cheaper than most of us can offer, which is bound to attract business. The outlet has certainly ruffled a few feathers but that's business these days, everyone wants something for nothing".
The factory outlet has been open for the past few months and now appears to be finding favour with traders and small retailers.
It highlights a growing trend by local manufacturers to cut margins and increase efficiency. As well as offering product direct through its factory warehouse, JF Mills also sells straight to large bakery customers such as National Continental Corporation and has struck deals with the likes of SuperPlus and other big retailers.
Mr. Cwach said the tight economy demanded that the company look at ways to get product to customers as cheaply as possible, a move he hoped would ultimately result in lower prices to consumers.
He added that after eight consecutive years of decline, flour sales had now begun to pick up slightly.
As part of the reason, the JF Mills boss pointed to the slowdown in growth of fast food outlets, increasing numbers of small bakeries and a return to the staple fried dumpling-based meals.
The news comes just days after JF Mills said it was now the lowest cost flour processor in the region and would send a few trailers of flour to Trinidad & Tobago in a bid to develop an export market there.
