Blue Power appointed strategic co-packer for Cari-med soap brands

AN examination of the Government’s Interim Fiscal Policy Paper (FPP) for the current 2021-2022 national budget has identified the threat being imposed on Jamaica’s finances by some self-financing public bodies (SFPBS).

The examination, which was carried out by the Auditor General’s Department, has highlighted that the performance of these SFPBS was significantly worse than budgeted. The records show that as of June 2021, there was an overall balance deficit of $367.4 million compared with a budget surplus of $7.56 billion, representing a deterioration of $7.93 billion.

This overall balance deficit figure is projected to continue for the remainder of current fiscal year. The Auditor General’s Department has identified seven large public bodies whose poor financial performance is threatening the national treasury.

LOSS MAKING SFPS IDENTIFIED

They are Clarendon Alumina Production Limited, National Water Commission, Housing Agency of Jamaica Limited, Jamaica Urban Transit

Company, National Health Fund, National Road Operating and Constructing Company and Urban Development Corporation. Clarendon Alumina, Jamaica Urban Transit Company and the National Road Operating and Constructing Company have been a perennial albatross around the neck of the national treasury, chalking up many years of losses, which have to be funded by taxpayers.

In its examination of the finances, the Auditor General’s Department cited, “the impact of the COVID-19 continues to be a contributing factor noted for the performance of some of the entities. The unfavourable results underscore the fiscal risks to the government and although continued monitoring was noted, no specific risk mitigating strategy was mentioned.”

The Fiscal Risk Statement, which is the broad parameter of the Government’s fiscal programme, indicated that the Holness Administration has established a ceiling of $6.4 billion in support of selected public bodies for the purpose of arrears and liabilities.

“Given that the total domestic arrears were already $5.48 billion as of June 2021, the established ceiling for these public bodies is in jeopardy of being exceeded by the end of fiscal year 2021/2022,” the Auditor General’s Department concluded.

In its report on the FPP, the Auditor General’s Department commented, “besides closely monitoring these public bodies, the Interim FPP did not indicated what actions would be taken should the ceiling be exceeded, suggesting that operations and activities will continue along the same path in the face of the growing uncertainty for the entities, and fiscal risk to the Government.”

COMMODITIES distribution company Cari-med Group has announced the appointment of local soap manufacturer Blue Power Group as its strategic co-packer for its soap brands.

The arrangement is being executed through Kirk-fp Limited, which is a member company of the Cari-med Group. The Cari-med soap brands to be produced by Blue Power under this arrangement comprise of Bomber, Carib Carbolic, Refresh and Castille.

The agreement between Blue Power Group and Kirk-fp will see the former expanding its manufacturing capacity with the purchase of an additional production line from Kirk-fp, which in addition to its core distribution business was also itself engaged in soap production. The brands that will now be made by the Blue Power will include those brands that was formerly manufactured locally as well as outsourced to international companies in Eurasia and Latin America.

Blue Power will be working closely with the production and quality control team of Kirk-fp to ensure that the quality and product availability is maintained or enhanced.

SELECTION PROCESS

Kirk-fp conducted a selection process to identify a manufacturer who can utilise economies of scale to produce its products at an affordable price to the consumers. At the end of this process, the company selected Blue Power because of its long-standing expertise and clear focus on soap production.

In announcing the decision earlier this week, chairman of the Cari-med Group Glen Christian pointed out that “the current strategy will see us giving enterprising Jamaican manufacturers an opportunity to leverage our established business development expertise.” He added that, “Kirk-fp has an outstanding track record in representing leading global brands as well as its own brands.’’

Chairman of Blue Power Group Dr Dhiru Tanna was elated in Blue Power’s selection as Cari-med’s strategic co-packer for its soap brands. He stressed that, “at its core, Blue Power Group is a soap manufacturing company. The goal of Blue Power is to make high-quality soap for good brands and good distributors and there is no question that Kirk-fp and its brands fall in this category. We are looking forward to working with them in the years ahead.”

Blue Power Group Ltd is Jamaica’s largest manufacturer of bar soaps and has been in operation for over 20 years. Blue Power currently employs over 40 people in soap manufacturing and expects to add new team members to accommodate the increased production.