Gracekennedy Using Innovation In Manufacturing To Navigate COVID-19 Impact

At a time when the fallout from COVID-19 continues to impact businesses around the world, GraceKennedy has renewed its commitment to manufacturing in Jamaica, strategically investing and reorganising not only to maintain its Manufacturing segment’s performance, but also to further build out and grow the segment. GK sees its investments in agro-processing and manufacturing as central to its overall growth strategy.

GK currently operates six manufacturing facilities in Jamaica: its Grace Food Processors Canning and Meats plants, Dairy Industries Jamaica and National Processors plants, and its Grace Agro-Processors facilities in Hounslow and Denbigh. The objective of GK’s manufacturing transformation strategic plan is to drive its significant competitive advantage, in a bid to firmly establish the Company as a regional powerhouse in food and beverage manufacturing.

“COVID-19 has presented its challenges, but we have remained focused, working extremely hard and efficiently towards achieving our objectives for Manufacturing. As a result of the efforts of our dedicated and proactive GK team, manufacturing has grown domestically and internationally, having increased exports to 30% of total production as at September 2020, up from 25% in 2019. This is significant progress towards our ultimate goal of getting that number to 50% by 2025,” said GraceKennedy Group CEO, Don Wehby.

Grace Foods is reporting heightened demand for its very popular vienna sausages, ketchup, porridges and soups during the pandemic, all of which are manufactured locally. Other locally made items such as Tropical Rhythms have reported growth both locally and internationally.

Buoyed by positive growth the Company also continues to pursue other strategies in the furtherance of its ultimate goal. This has included ramping up its co-packing offerings for third party, private label brands. “In the current economic climate, innovation in manufacturing is a matter of survival. GK has long believed this, and as such we were able to respond to market changes when COVID-19 hit. We continue to explore opportunities for innovation. We have the capability and the capacity to manufacture for other brands, and one such arrangement is our new partnership with Nestle Jamaica to package its milk powder at our Dairy Industries Jamaica facility,” said Wehby. 

GK has indicated that other similar partnerships are in the pipeline to come on stream in the near future. “We see opportunities to grow our manufacturing segment and we are seizing them. They include insourcing, where we can, and increasing our export ratio, bolstered by the growth we have seen in products like Tropical Rhythms. Our newly established Denbigh plant is also a key component of our export strategy, and I am very proud to say that currently, 100% of the products manufactured there, including jerk seasoning, canned ackee and callaloo, are exported,” said Mr Wehby.

“Jamaica must become more self-sufficient, and agro-processing and manufacturing are key drivers towards achieving this. GK is fully committed to playing our part and making the necessary capital investment to increase production at our Jamaican manufacturing facilities. This is critical not only for GK’s sustained growth but also for national development. It also enables us to better meet the needs of our customers all around the world. The selfless service of our manufacturing team has ensured that we continue to serve our customers at the highest standard, without disruption, at a time when there is heightened need,” Mr Wehby said.