IN 2001, when GraceKennedy launched the Grace Tropical Rhythms line of fruit drinks in Jamaica, the company correctly predicted that the drink would find favour with a wide cross section of Jamaicans. However, not only has Tropical Rhythms done well in the Jamaican marketplace, but, in 2005, the company sold close to a million cases internationally - 23 per cent more over the previous year.
Derrick Reckord, general manager of Grace Foods International (GFI) - the GraceKennedy subsidiary that markets Tropical Rhythms outside Jamaica - reported that the company's revenue grew by 14 per cent over 2004.
RESEARCH, PROMOTION
He attributes the successful results to investment of over US$250,000 in research and in excess of US$4 million on advertising and promotions since 2004, in GFI key markets. The company also invested heavily in developing its people as a key resource.
"Grace Tropical Rhythms and Grace Coconut Water were just two of the product categories that grew significantly as a result of that investment," said Reckord, noting that sales performance improved across the board in all other product categories.
While GFI markets the entire range of Grace products, the company took a decision some years ago to concentrate on beverages as the major products going into international markets. This strategy paid off as Jamaicans in the diaspora warmed to the idea of having these familiar flavours available.
While the United States represents the largest market outside of the Caribbean, the Caribbean still remains a major market for Tropical Rhythms.
LONG-TERM STRATEGY
Reckord says the plans are to continue to focus on growing the business regionally.
"We will use the Caribbean as a launching pad to go for a wider marketplace. If we can grow the brand substantially in the Caribbean, then we'll definitely have the base to move it significantly beyond our base in the long run"
Mr. Reckord believes the results being achieved by GFI are an example of the benefits to be gained by following through on GraceKennedy's long-term strategy.
"The results that we're seeing from GFI directly connect to the sort of vision that chairman and CEO, Douglas Orane, has actually laid out for the business. That is why, when so many of the other export houses and exporters in Jamaica closed up shop and retreated, we didn't because we had to look at a long-term strategy to growth and development."
SOURCE: Financial Gleaner, April 21, 2006
