- Ian Allen/Staff Photographer
Minister of Industry and Tourism, Aloun N'dombet Assamba, tries a sample at Grace's launch of its Diet Tropical Rhythms Juices and Readi Meal products at their Twickenham Close factory on Friday. Looking on, chairman and chief executive officer of Grace, Kennedy & Company, Douglas Orane (centre) and Grace Foods Marketing Manager, Anthony Lawrence (right) seem pleased with her hearty endorsement of the company's product.
Dennise Williams, Staff Reporter
GRACE FOOD Processors (Canning) Ltd (GFPC), a wholly owned subsidiary of Grace, Kennedy & Company Ltd., launched their Diet Tropical Rhythms Juices and their Readi Meal Products at their Twickenham Close factory on Friday.
Douglas Orane, chairman and CEO of Grace, Kennedy & Co. Ltd. spoke to the gathering about the new products and about the ties that GFPC has with Jamaican farmers.
"The only reason that Grace exists is to satisfy the unmet needs of Jamaican and Caribbean people. To satisfy the needs of our diabetic customers who complained about the sugar content of our juices, we have come out with these diet juices. And for our customers who are on the go, we have the Readi Meals. These meals are breakfast or any meal to go."
THE SECRET OF SUCCESS
Amidst the launch of the new products, the company explained the secret to its success in a hostile manufacturing environment and its contribution to the local agriculture industry.
Andrew Ho, managing director of GFPC informed the audience that, "There is a misconception that Grace is moving away from manufacturing. But this is not true."
Indeed, the factory is a money-making arm of the conglomerate that has defied the odds against Jamaican manufacturing companies. The company's annual revenue for 2002 was over $800 million. According to company literature, "GFPC is involved in food and beverage production. It currently has four main product lines namely, Tomato Ketchup, Bottled Juices, Canned Juices and Canned Vegetables."
The company goes on to reveal that bottled juices make up 40 per cent of the company's revenues, while ketchup accounts for 30 per cent. The factory's modern bottling line was installed in January 2001 at a cost of nearly US$2 million. This investment has paid off for the company in terms of efficiency as the line now runs 20 hours per day. However, Grace has not stopped there. The company has invested another US$1.3 million to be able to produce Capri Sun drinks.
Grace is the exclusive licensee of the drinks sold in silver pouches and distributes the product to Jamaica and the wider Caribbean. Stated Mr. Ho, "Grace will continue to remain in manufacturing. We will do what we have to remain competitive in the face of globalisation." One of the main areas of GFPC drive to remain competitive is the management of efficiency and costs. According to Mr. Ho, "Our goal is to get factory costs down in the region of 10-15 per cent by the end of the year. And we want to fully utilise the capacity of the factory. Right now we are producing at only 30-50 per cent of full capacity. The best way for us to fully utilise the factory is by seeking outside contracts.
EXTERNAL SOURCES
"Currently, the majority of the items produced here are Grace products. Come next year, we will be aggressively seeking clients from outside Jamaica who want co-packaging. At this stage 15-20 per cent of our output is exported, we want to be at least 50 per cent. GFPC wants to earn more profits from external sources. In fact, that is the mantra for the entire Grace, Kennedy Group."
The company only by invests in efficient machinery but also in efficient people. The company reports that it employs 156 people of whom 36 are administrative and technical and 120 are production workers.
States the company, "The successful restructuring of the company done in 1997 brought about creative ways of managing labour, performance-based pay for all categories of employees and a team approach to management that generated high motivation and creativity among employees."
The company has placed all managerial and administrative staff on performance pay where 35 per cent of the salary is not guaranteed but is dependent on the achievement of targets in the three critical areas of the company's performance profit, productivity and customer order satisfaction."
Mr. Orane then discussed the strong ties that Grace has with the local agriculture sector and their long time on-going buy Jamaica initiative. "Through the factory, we purchase from farmers carrots, mango, guava, papaya, sorrel and orange concentrate. Last year we purchased over J$600 million worth of produce from our local farmers."
Below is a breakdown of those purchases.
Grace Food Processors
(Canning) $22,502,985
Versair Inflite $79,050,442
Grace Food Processors (Meat Division)
Hi-Lo Food Stores
Produce $114,000,000
Meat $28,785,320
Chicken & Fish $95,986,539
Dairy $7,193,401
Eggs $5,007,847 $250,973,107
Grace Pepper Products $12,000,000
Grace Food Int'l
Ackees $84,794,000
Callaloo $25,595,000 $110,389,000
Industrial Catering Services $50,490,675
Total Produce for the Year $603,497,234
And Grace has been recognised for all their hard work in making Jamaican based juices. In May 2003, Grace Tropical Rhythms won the Canadian Grand Prix Award, given by the Canadian Grocers' Association. In November 2003, Grace Tropical Rhythms was named the Caribbean Innovative Product Award by Caribbean World magazine during the World Travel Market Week in London.
