Susan Gordon, Business Reporter
Berger Paints Jamaica head office, Kingston.
Pained by the inroads that rivals have made in the market, Berger Paints Jamaica Limited is banking on its computerised colour tinting system not only to boost revenues but also give the company a new edge over rivals.
The added investment in technology for competitive advantage follows Berger's bitter complaints last year that substandard products were eroding its market.
But the company, which ended its financial year for 2007 with a strong 23 per cent growth in after-tax profit to $47.36 million, has struck a new, more optimistic tone in 2008.
Projection
Berger's regional manager Warren McDonald says he projects a 25 per cent addition to earnings, which based on the company's $1.45 billion turnover last year, should bring in more than $362 million this year.
The new automated colour system is computerised, and allows for the mixing and matching of some 5,000 colours in the spectrum.
"The trend worldwide is going this way," said McDonald on Monday, and adding that Berger would grow on the process it started in 2006.
"We intend to build on this base and strengthen our presence in the market," Mc Donald said.
The tint system currently contributes 16 or 17 per cent of the Berger Jamaica's total turnover.
McDonald said the colour world system was already in 82 of the over 500 retail outlets islandwide where the Berger brand is on the shelves.
Tints
The equipment in those outlets, he said, belongs to the company, pointing out Phil's Hardware Limited and Super Valu Home and Centre Limited in Kingston, were the flagship businesses for the mixing of the tints.
The system allows customers to mix their own colours.
Berger's strategy is first to penetrate the more populated areas of the island before launching out into areas such as Savannah-la-Mar, Westmoreland and Hanover.
McDonald however, declined to say how much more the company would invest in this product this year. "We have already invested over $50 million on the equipment," he said, referring to last year's spend.
susan.gordon@gleanerjm.com
