Susan Gordon, Staff Reporter
Entrance to the non-operational Sweetheart Limited at 8 Norman Road in Kingston, yesterday. - RICARDO MAKYN/STAFF PHOTOGRAPHER
SWEETHEART LIMITED, the Jamaican distribution subsidiary of Trinidadian firm Bermudez Biscuit, has shut down and pulled the once extremely popular cream-filled Kiss cupcake from the market, saying that rising costs here made it difficult to compete.
"It's mainly a cost issue," said Michael Atterbury, Sweetheart's former sales manager.
Sweeheart, which had distribution centres in Kingston and Montego Bay has sold its 16 distribution vehicles and sent home its 60 employees, most of whom, according to Atterbury, have already found jobs.
The retreat of Sweetheart and Kiss from the Jamaican market, citing inability to compete, is ironic, given that foreign manufacturers operating here have in recent years mostly pulled out and headed for Trinidad and Tobago because of its lower operating costs. In fact, Trinidad and Tobago dominates the Caribbean Community (Caricom) market with its manufacturers, including processed foods.
DRIVING COMPETITIVENESS
However, Jamaica Manufacturers' Association (JMA) president, Doreen Frankson, suggested yesterday that the baking sector is one which retooling and the re-engineering of processes have recently been driving competitiveness.
"The industry is exceedingly competitive," Frankson said.
"It's not like the days when you had only five competitors," added Charlene Ashley, director of marketing sales and distribution at Honey Bun Ltd, a local bakery.
According to Ashley, the Bakers' Association of Jamaica has 100 bakeries on its register and "every week two or three new bakeries pop up around town."
Kiss, with estimated sales of $120 million a year, burst into the Jamaican market in the late 1990s. The sweet cupcake with its white creamy filling was a hit particularly with children, often finding its way into lunch boxes.
But according to Atterbury, increased costs, which pushed up the retail price of the product caused a decline in the sale and finally did in Kiss in the Jamaica market, at least for now.
Despite the departure of Kiss, Bermudez still has a presence in Jamaica. Three years ago it acquired the Jamaica Biscuit Company, a manufacturer of water crackers and other products from the Carerras Group. That firm is still in operation.
According to Atterbury, before last month's pull out, Kiss' distribution cost had risen between 40 and 50 per cent over the past two years or so because of the high energy costs here. The Kiss cupcake is a highly perishable commodity, requiring refrigeration during its short shelf life.
"The first thing was the high electricity cost," Atterbury said. "It made no difference whether you store it on the wharf or in your own facility, the electricity was horrendous. There was nothing more we could have done. Part of the problem was that the cake has such a short shelf life and to get it to the consumer at its freshest was a challenge."
