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Stabroek News

GraceKennedy launches Caribbean Traditions: Takes aim at bigger slice of prepared-foods market
published: Sunday | October 21, 2007

Sabrina N. Gordon, Business Reporter


Caribbean Traditions, a new frozen-food product from GraceKennedy.

GraceKennedy Limited has extended its line of prepared foods, packaging the distinct flavours of microwaveable Jamaican cuisine for a dispersed Caribbean market, to charm income from consumers willing to spend on convenience items.

venturing markets

The conglomerate's Grace Foods and Services, which handles product development, marketing and distribution, is rolling out its Grace Caribbean Traditions brand in different sections of North America, with the next launch scheduled for Florida.

The product range was first placed on the market in August in Canada, where it is manufactured.

The New York launch followed in early October.

"The prepared-food industry is a multibillion-dollar business," said Grace Foods' Anthony Lawrence, business development manager and team leader.

In the United States, the frozen-foods market is about US$7 billion, says Lawrence, while in Jamaica it is about J$8-10 billion (US$112 million to US$141 million). How much of the local market GraceKennedy commands is not information the company was willing to share for competitive reasons.

Food services, one of three primary business segments, is the chief money spinner for the group, contributing in FY 2006 just over one third of the $36 billion of overall revenues. Its contribution to pre-tax profits, however, was only

12 per cent.

The Caribbean Traditions product range includes jerk and curried chicken, which sell for US$4.99 (J$355), and jerk shrimp and curried mutton for US$5.99 (J$425).

The recipes were developed by Grace Kitchens in Kingston, Jamaica, then adapted to a manufacturing process in Canada, where the company operates a factory.

Eventually, the product will hit Jamaica, where supermarket free-zers already accommodate a number of brands, including local forerunner Homestyle.

"We are working assiduously on getting the product on the Jamaican shelves," said Lawrence.

On other shelves, Grace's instant porridges have been a big hit, with CEO Douglas Orane advising in May, at the release of the conglomerate's second-quarter earnings, that the product had exceeded even the company's expectations.

The porridges are made at the company's factory at Temple Hall, in the rural hills of St. Andrew.

Caribbean Traditions is pack-aged in a two-sided tray which is vacuum sealed and boxed. The food is sold in single packages or in a case of 12 boxes.

Angeline Gillings, senior product development manager at Grace Foods, while withholding comment on the investment made in Caribbean Traditions, said most of the spend went into market research and surveys, a process that took 12 months.

The next step, said Gillings, is to launch in the Caribbean after the completion of a feasibility study currently underway. The United Kingdom market is also being look at.

"While the Caribbean nationals living in US will welcome the new products, the Grace Caribbean Traditions meals should also find favour with some of the millions of Americans who visit the Caribbean each year and who are eager to relive the taste of the island," said Ricardo Bryan, Regional Business Manager-USA, Grace Foods.

Some of the pockets targeted are New York, New Jersey, South Florida, Atlanta, Washington DC, among others.

The distribution of the new product is driven by Jamaica, with extension to other territories through GraceKennedy subsidiaries and sister companies, such as WT Foods.

GraceKennedy acquired WT Foods in February of this year with the aim to continue their transformation into a global consumer group and to develop new consumer in the retail, wholesale and food services market in the United Kingdom.

sabrina.gordon@gleanerjm.com



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