Spur Tree in Transition Mode

CEO of Spur Tree Spices, Albert Bailey says the company is in full expansion mode as it looks to transition from a seasoning and spices company to a food manufacturer.

Speaking on Taking Stock with Kalilah Reynolds, Bailey said that the company’s main focus right now is the growth of its canned ackee product.

He said that last year’s acquisition of Exotic Products, which is known for its canned ackee, was a strategic move. He noted that there is an overwhelming demand for Jamaica’s national fruit in foreign markets.

“A critical element of our product mix going forward is ackee, especially in the markets that we operate. It is highly demanded and under supplied,” he said.

Spur Tree’s ackee in brine product

Spur Tree Spices almost tripled its first quarter net profits posting $50.8 million for January to March this year compared to $17.3 million in the first quarter of 2021.

Bailey said the addition of ackee to their product line played an integral role in the first quarter performance.

“The ability to get ackee through Exotic Products under the Spur Tree brand was critical in the results that we post and it will be critical moving forward also,” he added.

Expansion plans

To that point, the CEO said they have begun expanding Exotic’s factory to boost its manufacturing and storage capacity. Additionally, he said that the company is in the closing stages of securing a secondary supply location.

As part of its goal to expand to food manufacturing, Bailey also revealed that the company has made progress in securing additional food lines to come under the Spur Tree brand.

While he did not disclose what lines the company was looking at, he said they will be making announcements soon.

Spur Tree Spices raised over $335 million from an initial public offer (IPO) in December. Bailey said that a portion of those funds have been used to expand Spur Tree Spices’ capacity.

“At Spur Tree Spices, we are upgrading our capacity and production infrastructure. Our kettles, we’ve brought in a lot of bigger size kettles to grow our efficiencies,” he said.

Untapped potential

In addition to growing their product lines, Bailey said the company is also focused on expanding its reach in its existing overseas markets.

Spur Tree products are currently available in the United States, Canada, United Kingdom, Cayman, Costa Rica and Australia. He noted that while the company does have ambitions to enter more unconventional markets, there is still a lot of untapped potential in their existing markets.

“But in terms of where we are now, we’re not covering significant areas in the US and I think that is still our best growth market right now,” he noted. According to Bailey, Spur Tree products are on shelves in eight US states, however, he believes that number can grow.

“One of the things I will say is that we’re always looking to expand into other markets,” he said.

“Right now we’re having some discussions about expansion in the Caribbean, because we’re not in as many Caribbean countries as we would like and we’re having discussions to expand our reach in Canada and in the UK,” he added.

END

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Sashell Williams2024-09-03T21:40:31-05:00