Salada invests in sorrel and X-ray safety
Published:Wednesday | December 17, 2025 | 12:09 AM
Salada Foods Jamaica Limited will close out 2025 with record revenues, a new sorrel-flavoured drink, and a US$302,000 (J$50-million) investment in an X-ray machine to improve the quality of its core coffee products.
General Manager Tamii Brown said the debut is part of Salada’s continuing effort to diversify beyond coffee, aiming to resonate with consumers during Christmas and beyond. The new powdered instant sorrel drink will be sold locally and exported.
Brown noted that the product targets a share of the global US$670-million instant tea market, of which sorrel accounts for US$50 million.
“This isn’t just a seasonal drink, but a permanent product line,” she said, adding that packaging will be multilingual, including languages for African markets.
“We are trying to get away from the ‘me-too’ product development to stamp our class in new areas with big growth potential,” Brown told the Financial Gleaner, pointing to the success of its turmeric instant tea as proof of diversification.
Salada will tap its existing distributor, Lasco Distributors, to deepen its reach in the local market, with the sorrel drink marketed under the Mountain Peak brand.
The announcement follows audited results for the financial year ended September 2025, which show revenues climbing 7.9 per cent to $1.6 billion. Domestic sales accounted for $1.3 billion, with the balance earned from exports, including new Caribbean and UK markets. Net profit, however, dipped 9.7 per cent to $171.5 million, compared to $190 million in the prior year. Earnings per share slipped to $0.17 from $0.18.
The decline in profitability was driven by higher operating costs, particularly administrative expenses linked to one-off redundancy charges in June 2025 and consultancy fees tied to restructuring. Selling and promotional expenses rose to $81.4 million, reflecting marketing investments for overseas expansion. Finance costs climbed to $3.68 million from under $1 million a year earlier, tied to its new loan facility. Raw material costs also remained elevated due to high green coffee bean prices, though gross margins held steady at 30.5 per cent, underscoring operational efficiencies and disciplined procurement.
Capital expenditure during the year included the acquisition of the X-ray machine, financed through a US$302,000 related-party loan from Ideal Finance Corporation Limited at 6.0 per cent interest, maturing in 2028. The loan is secured by investment portfolios and repurchase agreements. Ideal, led by businessman Donovan Lewis, is a top 10 Salada shareholder, overseeing about 20 per cent of the company’s shares through various entities.
“The X-ray machine is a critical control point in our production process. It allows us to verify that our products are free from any foreign materials before they reach our end consumers,” Brown said. “While we already use multiple physical controls, the X-ray system provides an additional layer of assurance. This investment reflects our commitment to food safety, quality and consumer confidence.”
The equipment, currently classified as work-in-progress, will be fully commissioned in the next financial year.