Rum cake market on the rise
MORE COMPANIES are seeking a slice of the rum cake market dominated by Tortuga International, which makes roughly US$18 million in sales, regionally.
The makers of Kiss cakes launched a rum fruitcake for Christmas, while coffee company Country Traders Limited expanded its line of cakes to include a coffee rum cake, which also made its market debut this month.
“The industry needs excitement,” said Jeffrey Hall, CEO of Jamaica Producers Group, which owns Tortuga. “We welcome competition, but we are the market leader,” he asserted.
Rum cakes are mainly gift items that appeal to locals, especially during Christmas, but are year-round purchases for cruise passengers.
Mark and Wendy Fletcher formed the Sweet and Simply line of cakes three years ago and now sell it in original, coffee, butter rum, and chocolate flavours. But they acknowledge that their operation pales in comparison to
Tortuga. “Tortuga already has a name, and their volumes and advertising budget is huge. We cannot do that yet,” said Mark Fletcher.
BEST SOLD COFFEE
The Fletchers started the line to complement Country Traders’ main coffee business, which already held a wide reach in the retail and souvenir trade. Country Traders makes the Coffee Roasters brand, which is one of the best-sold coffees in Jamaica.
“It is an add-on line for us and supports the main business. Sales of cakes do not exceed 10 per cent of overall sales,” Fletcher told Gleaner Business. The Sweet and Simply four-ounce cakes retail for about $500.
Country Traders previously distributed Tortuga cakes in the local market, but that contract came to a halt amid two acquisition deals sealed by Jamaica Producers six years ago, which essentially made Tortuga a rival brand.
In October 2011, the conglomerate, whose main business lines are food and logistics, partnered with property conglomerate PanJam Investments Limited to acquire Mavis Bank Coffee Factory, the maker of Jablum products.
Then in December 2011, Jamaica Producers bought 62 per cent of Tortuga International Holdings, which was founded by Carlene and Captain Robert Hamaty. Subsequently, in January 2014, Jamaica Producers tapped Select Brands Limited as distributor for the Tortuga line of products.
Sweet and Simply Jamaican makes its cakes at an inhouse bakery, which generally operates with excess capacity outside of the