“It is hard to say what the full potential is at this point, but based on the response from the JAMPRO mission we can say that mainstream markets are receptive to products in the baked goods category”. She was referring to an October trade mission in which the company participated. We are currently in the process of solidifying partnerships for wider penetration”
Honey Bun Marketing Executive Janelle Brown commenting on their plan to expand into Europe and Latin America
Folks, it looks like we might be facing a cake war this Christmas 2015!
On one hand, Honey Bun, makes of pastries and confectionaries that many Jamaicans love, is expanding (Collinder, 2015, December 2) into Latin America and Europe. Their main product involved in this pus into foreign shores?
Buccaneer Rum cake, which is fitting role-reversal, as we’re were once a country invaded by buccaneers.
The 33 year old company which floated a successful IPO (Initial Public offer) back in on the Junior Market of the Jamaica Stock Exchange in June 2011 (Gordon, 2011, May 13) has been growing from strength to strength.
Now their latest financials for the first three quarters of 2015 have them riding high:
- JA$885.67 million year over year
- JA$741.95 million year over year in 2014
Cost of sales are on the rise, as their expenses due to electricity and other inputs increase:
- JA$640 million
- JA$437.75 million in 2014
Overall the company’s financial health looks good, both in terms of net profit and cash on hand:
- JA$64 million cash on hand
- JA$5.19 million in 2014
- JA$68.15 million Net Profit
- JA$23.3 million in financial year 2014
Honey Bun’s move from their location on Retirement Road in Kingston to a new manufacturing facility on East Street on February 2013 (The Jamaica Gleaner, 2013, February 15) where they’re located to this day seems to have done the trick.
They’d launched the Goldie (Delahaye, 2012, August 31), a cream-filled pastry in August 2012 that looks an awful lot like the Kiss Cake and the Twinkie had a child. They soon added another option, the chocolate Goldie (The Jamaica Gleaner, 2013, December 5), by popular demand in December 2013.
But the Buccaneer Rum Cake line has been Growing Strong, Game of Thrones Style, with Christmas and Easter being their strongest sales period, especially in Canada (South Florida Caribbean News, 2015, November 26).
To quote Honey Bun Marketing Executive Janelle Brown, Honey bun “has seen good pick-up in Canada over the holiday season, and we look forward to increased presence of our Spiced Bun and Easter Buns next year. We believe that partnering with JAMPRO has helped us to plug in to a strong network of retailers and distributors. As these relationships grow we hope to see greater expansion into mainstream markets over the next two years”.
So will they conquer Europe or Latin America? Or will they face stiff competition in these countries that already have an established baking tradition? As with the Goldie, they’ll they’ll need more than just one variety of cake……
Let the Buccaneer Rum Cake Wars Begin….
- Gordon, S. (2011, May 13). Investors Swarm Honey Bun IPO. Retrieved from http://jamaica-gleaner.com/gleaner/20110513/business/business3.html
- Delahaye, J. (2012, August 31). Honey Bun Launches ‘Goldie’ With A Twinkle. Retrieved from http://jamaica-gleaner.com/gleaner/20120831/business/business3.html
- The Jamaica Gleaner. (2013, February 15) Honey Bun To Relocate Bakery. Retrieved from http://jamaica-gleaner.com/gleaner/20130215/business/business4.html
- The Jamaica Gleaner. (2013, December 5). Honey Bun Launches Chocolate Goldie. Retrieved from http://jamaica-gleaner.com/gleaner/20120831/business/business3.html
- South Florida Caribbean News (2015, November 26). Jamaican Food Products In High Demand In Canada. Retrieved from http://sflcn.com/jamaican-food-products-in-high-demand-in-canada/
- Collinder, A. (2015, December 2). Honey Bun to go buccaneering in Europe, Latin America. Retrieved from http://www.jamaicaobserver.com/business/Honey-Bun-to-go-buccaneering-in-Europe–Latin-America_19241421