The cover of Salada Foods' 2007 annual report showing its flagship product, Mountain Peak coffee.

Salada Foods Jamaica Limited has signed Musson as exclusive distributor for its full range of products in Jamaica, simultaneously winding up the business arrangement it had with Lasco.

Lasco Distributors Limited handled about a quarter of Salada's local distribution.

The Musson group handled 75 per cent, through Musson Jamaica and T. Geddes Grant.

"With two companies as distributor there was always some challenges - no concentrated advertising or marketing of the products, and that was a problem," Salada's managing director, John Rosen, said.

Now there are more opportunity for synergies, he said, "with one manager to handle and formulate the distribution".

Lasco's new managing director Anthony Chang, did not acknowledge requests for comment, while Musson's Nigel Clarke said last night that the group had no comment.

The two companies were Salada's only domestic partners, but internationally, the coffee manufacturer channels its products through 18 other companies located across the Caribbean, the United States, Canada and United Kingdom.

Salada Foods is chiefly in the business of processing coffee, which makes up 95 per cent of sales.

But the company, which is principally owned by Donovan Lewis, who acquired majority control of the company in 2007, also produces teas and other beverage mixes and desserts under brand names such as Salada, Mountain Peak, Shirriff and Lushus.

Its sales topped $393 million at year-end September 30, 2008.

Salada Foods expects that Musson Jamaica, which is owned by chairman Desmond Blades and run by him and family members, will utilise its network of companies, including Musson Snack Division, Facey Merchan-dise and T. Geddes Grant, to channel its products.

Brand manager

Under the new deal with Musson, which took effect January 1, the distributor will appoint a brand manager to oversee all aspects of sales, marketing, promotions, and advertising spend for Salada's entire product range, as well as improved control of our receivables, Rosen said.

Salada will remain in charge of exports, dealing directly with its overseas partners.

Under the former dispensation, Lasco sold mainly coffee products. But Rosen said both distributors were found to be targeting the same channels, leading to a decision to revise the arrangement.

"It had to do with cost and efficiency generally, but what was happening was that there was duplication on the market," the Salada boss told Wednesday Business.

Rosen declined comment on the structure of the exclusive deal with Mussons, but said Salada would sell the products to Blades' company at a certain ex-factory price, leaving Musson to add its margins.

Other business

Musson's core business has been food distribution, but the diversified group is also into financial services, real estate, and pharmaceuticals distribution.

According to Rosen, there will be one product manager from Musson who will decide which companies in the group will distribute the different Salada products.

"He will make sure there is no cross over," said Rosen.

Salada Foods last year made a net profit of $68 million, in a year when sales climbed by 13 per cent to $393 million.

According to Rosen, Salada controls about 85 per cent of the instant-coffee market, with competitors such as Nestlés' Nescafe, Jablum, GraceKennedy, and Country Traders, among others sharing the other 15 per cent.

sabrina.gordon@gleanerjm

( L - R ) Rosen, Blades, Chang