Consolidated Baking Company, operating under the Purity brand, continues its search for the optimal product mix that will drive its next phase of growth. Faced with rising competition in the bread market, Purity is keen to diversify its offerings and reduce reliance on traditional bread products, which still account for a significant portion of its revenue.
Despite efforts to shift its business model, Chairman and Managing Director Anthony Chang acknowledges that Purity’s current portfolio has yet to make the desired impact on overall sales. “We do have a good portfolio of products. Based on market response, customers appreciate the products that we have launched. There is growing demand…but if you look at the percentage of sales of the products outside of bread, they are still not where we want it to be,” Chang explained in an interview with the Jamaica Observer following Purity’s recent annual general meeting.
The bread market, which Purity has long dominated, is facing challenges from low margins and increasing competition as other industry players seek growth in what is considered a mature market. While shorter breads, like the 16-ounce or half-size traditional hard-dough bread, have become popular, Purity has chosen a different path by expanding its product portfolio. The company’s latest offering is the Vybez Bar, a protein snack produced under the Miss Birdie brand.
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“We have more distribution points, and while sales have improved, as a percentage of overall sales, it’s still a small number,” Chang noted. Although he did not disclose specific targets for the bread segment’s sales ratio, he indicated that the contribution from bread sales has declined over the past four years.
Purity, known for its bread, biscuits, buns, pastries, and snacks, reported a loss of $22 million for the second quarter of 2024, attributed to lower revenues and rising expenses. The increased expenses are largely due to higher salaries, as well as selling and distribution costs, which have grown as the company seeks to boost sales of both new and long-standing products. Since 2020, Purity has introduced the Miss Birdie Rock Cake and the Miss Birdie Amaaazin Cinnamon Raisin Loaf to the market, diversifying its product lineup.
Looking forward, Purity aims to further expand its distribution network and launch additional new products. “You can expect to see a couple more products in the next few months, but at the same time, we have to drive sales for the ones already on the market,” Chang hinted. The company is focused on ramping up sales of its existing products in the short term while laying the groundwork for future growth.
To achieve its growth ambitions, Purity recognizes the need to invest in talent, management, and other resources. “We made the adjustments in our business model, but now we need to fuel that growth. We have strategies to fuel that growth, but we also need to put some fuel behind them and that is talent, management, processes, and other resources. That is what we are working on now, and we are confident that it will come over time,” Chang stated.
Talent acquisition remains a key challenge for Purity, echoing a common issue across the private sector. The company is adjusting its approach to human resources and its market strategies to better align with the current landscape. “Getting the right talent, from truck drivers to salespeople, is crucial,” Chang emphasized. “We have started to see some improvements, and we expect things will get better as we overcome these challenges.”
As Purity navigates its quest for the perfect product mix, it remains committed to innovation and strategic investments in talent and resources, positioning itself for sustained growth in an increasingly competitive market.
