Logistics Hub

Caribshopper.com , a cultural commerce site, officially opened its virtual doors in October 2020 and currently offers a broad catalogue of Caribbean products ranging from food, health and beauty, apparel and accessories, books, art, home and living to name a few. Caribshopper.com is an online marketplace that enables consumers in the United States to purchase Caribbean products, made directly by Caribbean merchants, and have them delivered directly to their doors. “Before COVID-19, the challenges most merchants faced was the cost to export as well as the logistics. Now during COVID-19 these merchants also have to think about entering the virtual space, which for many is a cost they can’t afford. Caribshopper has become the solution to all those challenges. Caribshopper also helps to market and tell the brand stories for each merchant. “It costs merchants nothing to list on the platform. Caribshopper unlike many other platforms has no fees. Open for all merchants, Caribshopper will work with the merchants who are not export ready to get them ready with the help of partners like JAMPRO [Jamaica Promotions Corporation], so we encourage merchants to contact us on any of our platforms for more information,” informed Kadion Preston, chief executive officer of Caribshopper. Caribshopper has already listed over 130 merchants from Jamaica offering more than 1900 products. During its initial stage more than 400 products were sold and delivered throughout the US in an average of three-and-a-half days. Merchants from Trinidad are now being on boarded to the platform and will start shipping this month. Caribshopper pivoted in 2019 to focus purely on export from the Caribbean to the rest of the world. Developing the Caribbean and creating a platform to showcase the talent, quality of products and developing the economy is what fueled the pivot. Source: http://www.jamaicaobserver.com/business-observer/caribshopper-the-online-sales-platform-promoting-caribbean-products-over-130-jamaican-merchants-have-listed-thus-far_209451?profile=1056

AFTER a nine-month hiatus from the Panama/Jamaica airspace due to the COVID-19 pandemic, the Panamanian-owned Copa Airlines soared to the skies on Monday (December 7), at almost full capacity, to regain its slot at Sangster International Airport (SIA) in Montego Bay. The re-entry of Copa Airlines into Montego Bay is a realisation of a combined effort between the Jamaica Tourist Board (JTB) and MBJ Airports Limited – the lessee of Sangster International Airport. The synergy between Copa Airlines and the Jamaican Government will result in an increase in the collection of taxes and fees for the Government, which is well needed at this time. Ninety-eight passengers and a seven-member crew were greeted by a local welcoming party headed by the JTB’s regional director of tourism, Odette Dyer. She was accompanied by chairman of the Jamaica Hotel and Tourist Association (Montego Bay Chapter) Nadine Spence, as well as representatives from the airline and the SIA. “We are very pleased to welcome the re-entry of Copa Airlines, one of the JTB’s very valuable partners in the tourism industry. This gives us more hope that our tourism sector will rebound. It inspires us to continue being relentless in marketing Jamaica as the premier destination in the Caribbean,” said Dyer. “I am elated. The return of any flight into the destination is very significant, especially during this pandemic.” Explaining that Copa Airlines services more than 80 gateways in Latin America she said it aligns well with the strategic objectives of the JTB, adding that it is the JTB’s pathway into that particular market. “The more people visiting Jamaica increases our chances of employing and re-employing Jamaicans into the tourism sector,” Dyer added. Dyer said more recently that Jamaica has been seeing more persons from Latin America visiting for vacation purposes, which has encouraged the JTB to explore that market in a more holistic manner. Statistics and air service development analyst at the SIA, Nadia Anglin-Nolan said Copa Airlines will operate a once-weekly flight (Mondays only) between Tocumen International Airport out of Panama City and Sangster International Airport during the month of December, and would likely increase their service according to demands. Anglin-Nolan reminded Jamaicans and Panamanians that there are no visa requirements to travel to either countries so they should consider visiting for holidays and shopping, particularly during Panama’s summer months of January onwards. JHTA’s area chairman, Nadine Spence said the resumption of Copa Airlines and others into Montego Bay has brought excitement and hope to the hospitality sector. “Today Copa has shown that they believe in Jamaica, the brand, the climate, the culture and its people. “We have it all. While some other airlines are in a wait and see mode, Copa has stayed true to their word by returning to our airspace. It alleviates some of the anxiety we have been experiencing in the sector. We are grateful to Copa,” Spence affirmed. Source: http://www.jamaicaobserver.com/business-observer/copa-airlines-returns-to-jamaica-after-nine-month-break_209464?profile=1056

Luxury coach operator Knutsford Express Services Limited will puts its Drax Hall terminal into operation by next summer and plans to open second courier hub before year end, says CEO Oliver Townsend CEO. The company, which operates a cross-country service connecting commuters to urban centres, is adding a premium service – business class – that will both provide more luggage space as well as room for passengers to ride in physically-distant comfort, at 50 per cent higher rates than regular commuters pay, Townsend told the Financial Gleaner. The company during the pandemic added three buses to its fleet that will facilitate the new premium service. The St Ann-based Drax Hall facility will be Knutsford’s second major hub, in addition to its base in New Kingston, but the first to incorporate commercial space from which the bus company intends to earn rental income. The Drax Hall Super Hub and Commercial Complex holds 15 storefronts spanning 23,000 square feet of leasable space. Knutsford Express will spend about $140 million this financial year, mostly to complete the hub. “We will start making money from the centre from July,” Townsend said, when asked the timeline expected for the company to start reaping returns from he investment. Knutsford has otherwise been expanding its package courier service, having started during the summer to do package pick-ups from businesses in New Kingston. Townsend said that the company will start offering a second courier centre on the Washington Boulevard, also in Kingston, this months, to focus more on individuals rather than businesses. Since the pandemic, Knutsford’s passenger volumes have fallen by more than two-thirds, leading to a dramatic fall-off in revenue. The fall-out continued even after the economy began reopening at the start of June, ending a near three-month lockdown of the economy to contain the coronavirus. Specifically, in its first quarter ending August, Knutsford recorded a 63 per cent drop in revenue to $121.8 million from $324.5 million a year earlier. The company’s expenses in the June-August period outpaced its top line inflows, leading to net losses of $25 million. The year prior, the company made a profit of $47.8 million in the three-month period. Townsend described the quarter as the worst in the company’s history and attributed the decline to the effects of the pandemic. He adds that up to October his outlook had been positive, in line with expectations of a rebound in travel to around 50 to 75 per cent of 2019 levels, during the peak winter tourist season. But it’s looking like the hospitality sector may have been too optimistic. Travel has not rebounded to the degree expected because of continuously rising COVID cases in markets that Jamaica would have been looking to for tourist business. Townsend said he is less optimistic now and more measured in his expectations, the caveat being whether the new COVID-19 vaccines set for release on the market in the coming days in the United Kingdom and Russia will translate to increased confidence for travel. “We know we will survive, and there are certain short-term aspects of our business that will put us in a better state going forward. And let us hope that people will take to the vaccine, and people will feel more comfortable to travel. When that business comes back, we have all the resources to take advantage of it,” he said. Source: http://jamaica-gleaner.com/article/business/20201206/amid-depressed-travel-knutsford-expanding-courier-operation-adding-shop

The Government of Jamaica has partnered with two (2) international firms to deliver digital marketing solutions and e-commerce opportunities to micro, small and medium enterprises (MSMEs) as a mechanism to cope with the impact of physical distancing and other restrictive measures due to the COVID 19 pandemic. This digitalization programme is being spearheaded by the Ministry of Industry, Investment and Commerce (MIIC), and was initiated as early as August 2019 through an arrangement with Kalou, a Google-affiliated small business online marketing solution. Since then, over 1,000 MSMEs have created webpages and have increased their market visibility to customers locally and overseas. The Kalou arrangement allows merchants to create their own webpage in less than 5 minutes at no cost and offers top placement in Google’s search results in the Google Map section free of cost to its clients. Persons transacting business with merchants who use the Kalou platform are required to make payment using PayPal. Fygaro is the latest entrant to the programme and that relationship was cemented in October 2020. Fygaro is an e-commerce generator that provides options to assist MSMEs with basic e-commerce services, through the Jamaica Business Development Corporation, the National Commercial Bank and other members of the MSMEs ecosystem. The Fygaro partnership offers businesses the opportunity to create their own website, facilitate online stores, payment buttons, links for social media, WhatsApp, invoicing, order management, online accounting and logistics integration. Merchants operating via this platform will incur no setup cost but are required to pay a minimal monthly fee of US$15 for the integrated suite of services. Under the arrangement with the Government of Jamaica, merchants who sign up with Fygaro will benefit from a three-month free trial period. Both platforms (Kolau and Fygaro) are being utilized to further the Government’s goal of digitalizing 25,000 MSMEs by 2022. Additionally, MSMEs are being trained in digital marketing and other capacity-building subject areas via webinars and YouTube live sessions in order to optimize their operation in the digital marketplace. In recognizing the importance of the digital space in business, particularly within an environment characterized by physical distancing and curfews, initiatives such as these are being pursued by Government to drive local businesses, increase market access, expand customer base and boost earning potential. This initiative is particularly relevant as businesses try to find creative ways of weathering the effects of the covid-19 pandemic on the market. The programme is also consistent with the objectives of the MSME and Entrepreneurship Policy, 2018 to “internationationalize” small businesses in Jamaica and to increase their sales and exports of goods and services internationally. Business owners wishing to take advantage of this opportunity can begin the process through the Ministry’s MSME webpage at http://www.micaf.gov.jm/content/msme and on the website of the Jamaica Business Development Corporation (JBDC) at http://www.jbdc.net. Source: https://jis.gov.jm/government-secures-partnership-to-expand-e-commerce-opportunities-for-msmes/

The Supreme Ventures Services Business Hub (SVS Business Hub) has inked a deal with JMMB Group SME Resource Centre that will give rise to a referral programme designed to allow Jamaica’s small and medium-sized enterprises (SMEs) to grow, scale and expand by tapping in the range of services offered by SVS Business Hub. Under the memorandum of understanding (MOU), SVS Business Hub will be listed as a Recommended Service Provider by JMMB Bank. Therefore, JMMB will refer clients seeking back-end office services such as payroll, accounting, marketing, graphic design, and technology services to the newly launched SVS Business Hub, based on the client’s best fit and needs. Dennis Chung, CEO of Supreme Ventures Services, a subsidiary of the Supreme Ventures Group under which the Business Hub operates, says the move is a testament to the potential of the Business Hub to make an indelible mark on the Jamaican economy by supporting small and medium businesses in their growth quest. “This move shows that other companies that are in the business of supporting small businesses recognise the potential of the SVS Business Hub. Through this partnership Jamaican entrepreneurs will be able to access the best in services from two of the largest commercial enterprises in Jamaica and give their businesses the best chance to grow and expand,” he said. In describing this partnership as a win-win for clients, Shani Duncan-Falconer, senior corporate manager, JMMB Group SME Resource Centre shared, “We are happy to onboard SVS Business Hub as a recommended service provider, as it broadens the range of services that our SME clients will have access to, as we seek to support them in scaling and growing their businesses, especially in the current economic environment.” Further underscoring the partnership approach, she said. “We will remain with our clients throughout their entire journey, even as we assist them to access the range of support services, from our recommended service partners that best suits their unique business needs.” Clients in Jamaica and Trinidad and Tobago, where JMMB Group recently opened the doors of its SME unit, are set to benefit from the full range of services offered by SVS Business Hub. This agreement is in keeping with JMMB Group’s strategic thrust towards building out its focus on small and medium-sized enterprises (SMEs), in line with its financial inclusion and integrated financial partnership approach.   As part of its strategy, the JMMB Group intends to add value to its SME clients, through the provision of the financial partnership, resources, innovative financial solutions and a network, throughout these SMEs businesses’ life cycles; thereby, providing necessary support for the growth in the sector and filling the gaps that currently exist in the financial sector. The MOU has a lifespan of one year with an opportunity to reengage afterwards. Source: https://www.loopjamaica.com/content/supreme-business-hub-inks-mou-jmmb-sme-resource-centre

It’s a tale of two cities and the different paths being taken by the airports serving them. MBJ Airports Limited, operator of the Sangster International in resort city Montego Bay, is pressing ahead with some of its US$112-million five-year capital spending commitments to 2024, under its lease agreement plus other infrastructure works. This is despite the hallowing out of its passenger numbers and revenues by the COVID-19 pandemic, and even as its sister company PAC Kingston Airport Limited, PACKAL, is calling time-out on its US$100-million infrastructure commitments at the airport it runs in the nation’s capital. Both companies are subsidiaries of Mexican airports operator Grupo Aeroportuario del Pacífico SAB, or GAP – which translates in English to Pacific Airport Group. PACKAL is wholly owned, while the Mexican firm owns 74.5 per cent of MBJ, with Canada’s Vantage Airport Group owning 25.5 per cent. Capital works at Sangster International, including runway extension, shoreline protection, apron and departures area expansion, and a major overhaul of its air-conditioning system, were in train before the pandemic and are moving full steam ahead for a planned completion next year. The first phase of a US$3-million one-megawatt solar power installation project is slated for completion by December, with the airport operator readying to move into phase two next year. The renewable power is expected to result in energy cost savings of 33 per cent. According to the financials of its parent, MBJ committed to a capital development programme of US$37.9 million for the five years April 2015 to March 2020 and had made capital investments of US$54.8 million up to December last year. Two year ago, MBJ said a US$40-million makeover there was being done with loan financing secured in 2017 from Scotiabank Jamaica. The company returned to Scotiabank two months ago to borrow another US$60 million to fund some current capital development projects and for general corporate purposes. “At the start of the pandemic, we chose to prioritise projects that reduce operational costs, improve operational efficiency and/or provide economic benefit,” said MBJ Airport CEO Shane Munroe in an interview with the Financial Gleaner. “MBJ continues to pursue projects required to maintain the airport infrastructure, such as replacement of the HVAC chillers; or result in operational efficiency, such as the solar PV project – and [we] have also used the downtime to execute projects that would have otherwise been disruptive, such as the expansion of the departures retail area and rehabilitation of our airfield pavement,” he said. Plans Deferred Munroe noted, however, that the full capital programme is being curtailed for the airport that handles more than 70 per cent of Jamaica’s tourist arrivals. “The installation of some master plan projects have been deferred, and MBJ intends to execute those projects in line with the recovery in passenger traffic,” he said. With debt servicing coming from cash flow, the airport operator no doubt has an eye on plummeting revenues, which are directly tied to passenger numbers, even as it pushes ahead with upgrades in line with Munroe’s optimism for a big traffic return in the near future. GAP reported in January that passenger numbers had grown five per cent year-on-year in 2019 to 4.7 million, with more than one million people using the airport in the final three months last year, before registering a more than 15 per cent decline in the first quarter this year over the same period of 2019. A more precipitous decline came in the second quarter, when passenger numbers plunged 97 per cent over the similar period in 2019, as the Government shuttered airports in response to the first case of the COVID-19 disease in the country. In its nine-month financials, GAP reported that passenger traffic at Sangster was a mere 174,500 for the three months to September this year, down 84 per cent for the quarter and shrinking by more than 63 per cent over nine months. Nine-month aeronautical revenues from airline charges at Sangster International fell by US$29.4 million, or nearly 50 per cent, compared to the similar period of 2019. This includes passenger departure fees and aircraft landing and parking charges. Also going significantly south were revenues from non-aeronautical services – commercial space rental, fees paid by advertisers, and certain ground transport providers, as well as income from businesses operated by the airport, such as car parks and VIP lounges. And with the significant fall-off or wipeout of sales for the airport’s approximately 70 tenants, some business operators there have called it quits. Two speciality retail shops, two tour operators and an attraction business have packed it in. The business closures come despite what Munroe says is the provision of significant relief to the concessionaires by way of more than US$9 million in rental reductions and commercial fees waived from March to year end. Most tenant contracts at GAP airports are royalty-based, with tenants paying a portion of revenues, plus minimum fixed amounts based on square footage. “We intend to continue providing relief for our commercial concessionaires through 2021, in line with the recovery in passenger traffic,” Munroe noted. Source: http://jamaica-gleaner.com/article/business/20201127/mbj-airport-ramps-capex-post-covid-gain

The novel coronavirus pandemic has severely impacted Jamaica’s agricultural sector. The sudden shutdown of the tourism industry in March left thousands of pounds of produce with no market. The loss of sales from those crops made it difficult for several farmers to replant, this was followed by severe drought throughout the summer. Plus, there was continuous rainfall for several weeks making recovery by this vital sector slow, causing an extended scarcity of several crops. Like other major planks of the country’s economy, the agricultural sector must develop robust measures to cushion the effects of the virus. Co-founder and chief executive officer (CEO) of FarmLinkr Shelly Heaven says her organisation is one of the entities focused on transforming the agriculture sector with the hope of safeguarding Jamaica’s national and economic development and post-pandemic recovery. “FarmLinkr began its operations in 2017 as an online marketplace that is on a mission to revolutionise the agricultural sector through the use of technology. “We link together farmers and fresh produce resellers with wholesale buyers, bridging the market information asymmetry gap, via the sale of fresh farm produce both locally and internationally,” Heaven said in an interview with this publication. Heaven said that FarmLinkr’s platform provides a safe and secure environment for vendors and shoppers to conduct their business. “With fewer local markets available to farmers, due to the closure of the tourism industry, it is important now more than ever to increase the efficiency of our food distribution and supply chains. ”Our online platform provides the opportunity to significantly assist in this area,” the young entrepreneur said in her interview.   HOW IT WORKS Heaven explained, “FarmLinkr provides farmers with the opportunity to create a free online store to list their first produce for sale, free of cost, in a matter of minutes. The platform provides all the necessary tools to effectively manage an online store. Farmers are therefore provided with much-needed visibility to market their produce to a wider audience both locally and internationally. Buyers can pay with any international Visa or Mastercard and farmers receive funds from sales in their local bank accounts. Services such as ours are invaluable under our new normal, where avoiding unnecessary contact is advised. The convenience of our service is also vital to both shoppers and sellers as a well-needed time saver, a scarce resource for many people.”   RESILIENCE UNDER COVID-19 Heaven advised that since starting in 2017, “the company has since pivoted and now also offers contractual farming agreements with large buyers such as hotels, exporters, restaurants, supermarkets and processors. Buyers are invited to identify their produce quantity and frequency needs, which are then grown by the company’s trusted network of farmers. Where there are no contracts in place, FarmLinkr can provide buyers with a fresh supply of produce based on availability. With the reduced local demand due to COVID, the company has now increased focus on exporters and export markets”. According to Heaven, “agriculture is a ‘sleeping gold mine’. We need to awaken it and unlock the benefits for Jamaica’s national and economic growth and development, and in so doing, also transform the lives of our farmers”.

In a bid to increase transparency and ensure Jamaica is safe for doing business, the Common Reporting Standard (CRS) is to be introduced locally, in keeping with global standards on tax compliance. Aimed at combatting tax evasion, the CRS is an information standard for the automatic exchange of information regarding financial accounts between tax authorities globally, which the Organisation for Economic Co-operation and Development (OECD) developed in 2014. Both Houses of Parliament have now approved legislation that incorporates the CRS into domestic law. This is the Revenue Administration (Amendment) Act, which was approved by the Lower House on November 10 and passed in the Senate on Friday (November 20). Piloting the Bill in the Senate, Leader of Government Business in the Senate, Senator the Hon Kamina Johnson Smith, pointed out that Jamaica has been a role model and example in the region in respect of tax compliance with the global standards. “In that context, we weren’t previously required to commit to starting automatic exchange of information, but as we seek to maintain high standards in tax compliance and our global standing in this regard, we are now proceeding to this next level of legislative strength,” she said. The Senator, who is also Minister of Foreign Affairs and Foreign Trade, noted that exchange of information between revenue authorities has been a long-standing part of the legal and domestic landscape in Jamaica, forming the basis of an article in the country’s double taxation agreements as well as being the subject of stand-alone bilateral tax information exchange agreements. “However, in the aftermath of the global financial crisis, and the political momentum with respect to international tax matters, it shifted towards opportunities provided by automatic exchange of information, and as such, in September 2013, the G20 Finance Ministers and Central Bank Governors determined that automatic exchange of information was the new globally accepted standard,” she informed. She noted that by 2014, more than 104 jurisdictions committed to swiftly implement multilateral automatic exchange of information through the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), using the CRS platform. “The MAAC is a multilateral convention that was designed as an instrument of international law to facilitate all forms of administrative cooperation. It contains strict rules of confidentiality, proper use of information and permits automatic exchange of information. One of its main advantages lies in its global reach with 141 signatories as at September 1, 2020,” she said. Jamaica signed the MAAC in 2016, ratified it in 2018 and it entered into force on March 3, 2019. The Minister noted that Jamaica is now seeking to operationalise the CRS platform under the MAAC through amendments to the Revenue Administration Act, which incorporates the text of the Convention. “As Jamaica works towards continued growth and development, these amendments are designed to ensure increased compliance by entities operating within the country as well as to maintain tax transparency. This will in turn maintain and even enhance Jamaica’s reputation in the global landscape,” she said. Senator Johnson Smith further noted that under the CRS, it is financial and banking information that forms the focus of the global model for automatic exchange. “So the CRS, with a view to maximising efficiency and reducing the cost for financial institutions, draws extensively on an intergovernmental approach, which is already used through implementation of the [United States] Foreign Account Tax Compliance Act (FATCA),” she said. The idea for the CRS is based on the FATCA implementation agreements. FATCA is an important development in US efforts to combat tax evasion by US persons holding accounts and other financial assets offshore. “Jamaica intends to leverage its successful experience in the implementation of FATCA to proceed with the introduction of the CRS locally,” she said. In the meantime, Mrs. Johnson Smith noted that the Government has had stakeholder consultations regarding the CRS with a number of representatives of various private-sector organisations, including the Private Sector Organisation of Jamaica (PSOJ), the Jamaica Chamber of Commerce, the Bankers Association and numerous financial institutions. “The representatives were sensitised to the CRS and had the benefit of expertise of the OECD to address their concerns,” she said. Source: https://jis.gov.jm/common-reporting-standard-to-be-introduced-locally-to-combat-tax-evasion/

The Jamaica Business Development Corporation (JBDC) is partnering with international organisation, CIAL Dun & Bradstreet, to deliver critical development services to operators in the micro, small and medium-sized enterprise (MSME) sector as they grapple with the effects of the coronavirus (COVID-19). The agreement between the entities was signed on Wednesday (November 18) during a ceremony staged by the JBDC to mark Global Entrepreneurship Week 2020 under the theme ‘IDEATE. INNOVATE. ACTIVATE’. With a strong presence across 43 countries in Latin America and the Caribbean, CIAL Dun & Bradstreet empowers companies of all sizes to grow, manage their customers and suppliers, and operate successfully in an increasingly global, transparent and modern economy.  The entity has enabled millions of businesses around the world to make confident decisions with reliable and accessible information. JBDC Board Chairman, Dr. William Lawrence, said he anticipates that the partnership will help the country’s MSMEs to recover quickly and go forward. “As you know, the country, like many others, has been hard hit and as the main driver of economic growth, the business sector has had to grapple with many challenges. “A number of surveys suggest that… at the MSME sector, there is need for special help and this is where the JBDC has always stepped up to the plate,” he noted. Dr. Lawrence said that the JBDC Board of Directors is pleased with the swift progress that the organisation has been making since the onset of COVID-19. State Minister of Industry, Investment and Commerce, Dr. the Hon. Norman Dunn, for his part, charged the JBDC to continue to engage industries in an effort to assist them to transform and identify new ideas. He noted that Global Entrepreneurship Week is more than just networking and building awareness. “It is also about unleashing our creativity, exploiting new opportunities, solving problems, taking risks, learning about our failures and successes and charting a new course for the future. It is about thinking big, making our mark in the Jamaican landscape and the world,” he pointed out. He further noted the appropriateness of Global Entrepreneurship Week theme. “As an entrepreneur myself, I understand the importance of these terms – ideate, innovate and activate. It is what makes us entrepreneurs,” he said. The JBDC is the Government’s business development agency that assists in the sustainable creation and development of MSMEs in Jamaica. Source: https://jis.gov.jm/jbdc-partners-with-cial-dun-bradstreet-to-assist-msmes/

Jamaican Teas Limited is adding 12,000 square feet of factory space, a $150-million investment that will give the company over 50 per cent more room to make non-tea products for its expanding market. CEO John Mahfood says construction is planned for March-April in 2021, which means the new space should be commissioned into service by next September, taking the company’s Kingston-based factory from 22,000 square feet to 34,000 square feet. “Of course, there will be additional racks and shelving, along with manufacturing production equipment,” said Mahfood. “Based on the type of construction we should be operational in four to five months,” he said. Jamaican Teas currently runs three work shifts, six days per week, but with food being a COVID-resistant market, the company, whose core business is tea production under Tetley and Caribbean Dream brands, but also the maker of other items, says it needs new capacity for non-tea goods. At year ending September 2020, the tea maker reported record revenue of $2.2 billion, and, as Mahfood noted, Jamaican Teas achieved its objective of getting most of its revenue from exports, which accounted for 65 per cent of top-line income. The company did not fare as well at the bottom line, due to its holdings in equity investor QWI Investments Limited. Jamaican Teas say a reversal in investment income from positive $533 million to a loss of $433 million, coming mostly from the heavy unrealised losses from QWI during the second quarter, due to COVID-induced collapse of the equities market. Consequently, Jamaican Teas’ net profit fell from $396 million to a preliminary estimate of $210 million this year. The 2020 numbers are still subject to audit. DEEPEN MARKET PENETRATION The factory expansion will allow the company to focus even more on exports, while concurrently addressing demand in its home market, he said. Mahfood is projecting US$1 million in additional revenue from the expansion, which will centre on soups and spices and other non-tea items. “We’re very fortunate that we’ve been able to reap the benefits of years of hard work in building that base. With this expansion we expect that our distributors will deepen the market penetration, by expanding the customer base and the number of locations we go to, especially in the USA,” he said. He added that the Caribbean market, which has been growing at about 20 per cent per year, is ripe for further expansion. Last week, to create more supply of the company’s shares, Jamaican Teas sought and got approval from shareholders to execute a three-for-one stock split, effective November 30. It will grow the listed JAMT shares from 695.08 million to 2.085 billion units. While reporting to shareholders about the company’s overall performance, Mahfood said Jamaican Teas had seen a 70 per cent spike in revenue over the past year, arising from a 49 per cent increase in exports, seven per cent growth in domestic sales, a full year of supermarket sales, as opposed to just four months in the previous period, and income from the sale of the Manor Park apartments developed by the company’s real estate arm. Of the 18 units at the Manor Park complex, 12 were sold outright, while five are under contract for sale, and one remains unsold – bringing in enough cash to finance the additional factory space, he told the Financial Gleaner. “The real estate development delivered $380 million. That will give us sufficient resources to deal with the expansion,” he said. Jamaican Teas has another real estate project under way at Belvedere, near Red Hills, St Andrew. The 25 residential units, priced at $14 million to $20 million, are under construction and due for completion in October 2021. Source: http://jamaica-gleaner.com/article/business/20201125/jamaican-teas-upsizing-factory-50-cent