Boiler accident cease local coffee production at Salada

An accident in the boiler room at instant coffee processor Salada Foods Limited led to a $23 million net loss for the December quarter 2018 and the halt of production.

The good thing is that enough branded Mountain Peak instant coffee was in the trade and still available for purchase.

The decline arose last October from an accident in the broiler room wherein both boilers were damaged and had to be taken offline. The main boiler only came back online at the end of November arising from repair delays, said Salada which manufactures instant coffee and ground coffee beans at its registered office on 20 Bell Road in Kingston.

“While it was down there was no production of coffee however there was sufficient finished goods inventory at Lasco and Salada’s overseas distributors to satisfy market needs,”said Salada in its interim report. Since February 2017, the company outsourced its distribution to Lasco Distributors.

Full production resumed last December, and it is now normalizing inventory levels with its distribution partners and expects by the end of the second quarter to get back on track with its financial results. Revenues amounted to $172 million for three months to December 2018 from $228 million in the corresponding period in 2017.

For the year ended September 30, 2018, the company led by General Manager Dianna Blake-Bennett grew its annual sales to $1 billion an increase of 19 per cent, up from $872,000 in the comparative year.

Improved exports and domestic sales were the keys to unlock much of the sales gains. Profits were buoyed by a strong sales performance, with Salada growing its domestic sales by 16.7 per cent, and improving its export sales in Canada and Barbados by 440 per cent and 220 per cent respectively.

 

Afternoon cup of joe

 

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New players in Jamaica coffee offering cheaper deals in 2019

So more good news for buyers. When the mist of microclimate clears, new players are seen offering deals for their brands. They hype their beans as the best from the Jamaica Blue Mountain. Yeah so does everyone, yet some coffees taste ordinary and others amazing.

New players in the retail scene include Bawk Coffee, Plantation Blue and one can even say Stoneleigh.

These players all were involved in various aspects of the established trade and broke away to form their own brand. The more players means more competition in the sector which prides itself on a grandfather-taste which predates Starbucks and of course thirdwave.

This taste is distinct and offers amazing coffee without the bells of whistles of modern coffees. JBM (Jamaica Blue Mountain) is just layered-complexity without the hype.

So of course competition led to price cuts of between 10 to 20 per cent on shelves and on selling platforms like ebay and so on. In fact Stoneleigh actually slashed their retail rates by about 30 per cent just to move volumes. Let’s see what happens on reorders.

The context however is that coffee prices in Jamaica have started to fall back in 2016/17 based on global supply and demand factors. But now come 2019 its competition that’s driving the dip at the roasted bean level. What does this mean for consumers… more choice at cheaper prices.

But of course, we all know you can’t just buy JBM blindly.  That’s why its important to know your source. We find that all the new brands offer quality but we’d recommend getting someone whether at the brand or a broker to cup it first prior to shipment.

Cheers to great coffee!

chemex drum 6

 

Jamaica Blue’s newest UK cafe sells Wallenford beans

Jamaica Blue made its debut in the United Kingdom opening its first cafe, on 8th December. The chain of 170 cafes within Europe, quickly grew that number to three in the UK with its third in Chelmsford is in the Bond Street complex.

Based on packaging the chain sells single source from Wallenford, blends from Jamaica, and coffees from other parts of the world.

If you are in the UK check them out. The cafe boasts vertical grass walls and lighting made from recycled Jamaica Blue Mountain barrels. Very cool, trendy and what you’d expect from cafes trying to enter a mature market.

Their Wallenford coffee would offer the signature balance of chocolate, vanilla and spice. It’s a profile known globally and respected among coffee nerds as the world’s finest.   If you are however not visiting the UK anytime soon. Consider Wallenford as your next coffee.

The motto of the Jamaica Blue brand is the Jamaican proverb, ‘Wan wan coco ful baskit’. The company bends its meaning focusing on slowing down to fulfill goals. More correctly it represents fulfilling goals one deed at a time.  However the simple philosophy of the chain includes serving great coffee, food and service. 

“From our humble beginnings twenty-odd years ago, we now have a growing international network of over 170 stores operating in 7 countries,” stated the company on its website.