Ashford W. Meikle, Staff Reporter
The headquarters of Lascelles deMercado on Dominica Drive in New Kingston, St. Andrew. - FILE
MAJOR CONGLOMERATE, Lascelles deMercado and Company Limited, says that its immediate plans will be to build the company's brand on the international market as it strives to be competitive.
"Our intention and resources now need to turn much more to brand development and investment," said Lascelles' information systems manager, Rooney Chambers.
He was making a presentation on the group's future plans after its annual general meeting recently at Lascelles' head office on Dominica Drive in New Kingston.
Chambers noted that the group would use, as a reference point, its mission statement - growing shareholder value.
He noted that over the past three years the "substantial amount ... that went into capital expenditure [is] now tapering off."
STRENGTHENING IMAGE
With this decline in capital expenditure the company is now turning its focus to strengthening its image, particularly in the United States.
Argued the executive: "Today, a brand is not a mark on the body, but a mark on the mind. Today in the consumer era we are so inundated with brands that we tend to take them for granted and very often we are not aware of their place in our lives."
The company's stated plans come at a time when it is experiencing strong growth in sales in its liquor, rums and wines segment. For example, compared to the previous year, international sales went up by about 20 per cent.
In fact, as pointed out in the company's annual report, the company's flagship product on the international market, Appleton Jamaica Rum, saw a 22 per cent growth during the year.
Lascelles attributes this to "the continuing investment spend on our brands [a] determined effort to enhance brand equity."
AMERICAN MARKET?
As part of this plan, the company will be focusing on the lucrative United States market where, 10 years ago, it took four to five years for Appleton sales to reach 20,000 cases. Today, however, it takes one to two years.
Ironically, while Appleton's sales in Canada has been twice that of the U.S. over the last ten years, the American market has the potential to sell about ten times as much.
"If we are truly to grow shareholder value we have to realise Appleton's potential in the US market," commented Mr. Chambers.
The Lascelles deMercado conglomerate is comprised of five segments general merchandise, transportation, general insurance, investments, and liquors, rums wines and sugar.
For its financial year to September 30, 2005 Lascelles saw a 14 per cent increase in its revenue to $18.2 billion.
The growth in net profit was much higher - a 25 per cent increase which climbed to just under $1.9 billion, compared to the $1.5 billion in 2004.
