Jamaica Producers Group (JPG) has announced a change in its strategic thrust in the wake of the new banana regime adopted by the European Union (EU).
The new EU regime provides market access for the Group's bananas until 2005 and for an open market with a limited tariff thereafter.
A statement by JPG's Chairman, Charles Johnston, that accompanied the release of the Group's audited 2001 results, has indicated that JPG will now face the challenges of globalisation squarely, by strengthening its focus on the businesses in which it has a clear competitive advantage and a strong market position.
The four-pronged strategic plan will require the Group to broaden and deepen its United Kingdombased investments in chilled juices, drinks and foods.
It will continue to build a major globally competitive procurer, distributor and processor of the full range of fresh produce in the UK.
The Group plans to increase its sales in Jamaica of bananas, banana-based snack foods and ultimately other fresh produce and tropical snacks, and it says it will continue to create shareholder value through the management of its investment portfolio.
Mr. Johnston expressed confidence in the restructuring plan. He said it builds on the Group's operating success in its two UK-based subsidiaries. These are JP Fruit Distributors, with its fruit distribution business and Sunjuice, now the UK market leader in fresh juices.
It will continue to promote local banana sales and strong performance in the Group's investment portfolio. In 2001, profit before taxation and extraordinary items increased to $277.61 million, up 89.2 per cent from $146.74 million the previous year.
The strategic shift has, however, occasioned extraordinary costs of $421.61 million, comprising non-recurring restructuring and closure costs in various business units and the write down of assets and other provisions in the Group's banana growing business.
The year-end results released by Jamaica Producers Group last Friday, showed a net loss in 2001 of $382.16 million and a balance sheet at year-end, with shareholders' equity of $2.44 billion, long-term debt of $151.61 million and net cash and short-term investments of $652.58 million
