Food conglomerate GraceKennedy Limited (GK) is heading to the market with a new product that aims to tap a consumer group that wants to eat less meat.

In June, GK will bring Earth Chef to the Jamaican market - a range of convenient, ready-to-prepare veggie meals.

But two of the four meal ranges announced by the food company Friday are paradoxically branded with the meats they are meant to imitate.

So, Grace plans to roll out packages of "veggie curried mutton, veggie stewed beef, and flavoured and unflavoured veggie mince" by the first week of June.

"We are currently building up inventory levels," said Anthony Lawrence, global brand manager at GK Foods division.

"Its a good-taste meat substitute. Now with more focus on reduced meat intake, or no meat at all, it provides an economic alternative," he added.

But GraceKennedy is not saying just how big a market it estimates for veggie meals, nor the volumes it hopes to sell.

The company, in line with company practice, is building up about six weeks of inventory before it begins supplying grocers.

Different flavours

Earth Chef comes in a sachet with about 90 grams of content for four servings. The different flavours are made of meat substitute flavoured with spices to build the particular taste.

It is low cholesterol and high protein. And for such healthy goodness in a sachet, customers might pay a retail price of $135-$140 per package.

Grace said Friday, however, that the introductory price might change by the time EarthChef hit the shelves.

Word of GraceKennedy's newest product comes amid a high point for the company, whose first-quarter earnings grew about 34 per cent.

At March 31, 2009, GK made net profit of $934 million, or $2.68 per share, compared to $696 million, or $1.94 per share in the first quarter of 2008.

The top line, however, was nowhere as robust as the bottom line. Revenues, comparatively, grew an anaemic 6.6 per cent, from $13.8 billion in Q108 to $14.7 billion at Q109.

"Although we see challenges for the remainder of 2009, we believe that the implementation of a lower cost structure, new product introductions and aggressive marketing will lead to continuing improvements as the year progresses," said a statement from chairman, Douglas Orane, appended to the earnings report.

The company is finalising a 235,000 sq ft distribution centre under construction, to centralise its warehousing, from which GK anticipates annual savings of US$5.2 million. But the facility will not become operational before January 2010, which takes the company into a new fiscal year.

For the quarter, GK Foods Division brought in revenue of approximately $8.7 billion, compared to the $8.3 billion earned for the similar quarter last year.

Of the $32 billion made in revenue by the food division for the year 2008, Edwin Burton, chief executive officer of GK Foods, said new product sales accounted for just about $1.3 billion.

No disclosure was made on the cost that goes into new product development, including the R&D costs for EarthChef.

It will be the third product to be launched by GK Foods since the start of the year - preceded by Grace Quick Cook Porridges, which comes in hominy, plantain and peanut flavour as well as Grace Blends, a range of sorrel drinks.

"There are several things to come that we have on the drawing board but can't say until that time," said Lawrence.

GK Foods is collaborating on a vegetable- and produce-packing facility in St Elizabeth with the Ministry of Agriculture.

Some of the key crops include carrot, cucumber, tomato and cabbage.

Similarly, a pepper and scallion mash facility is in the works for the same parish, allowing the company greater control of a raw-material source and the consistency of the product which goes into its foods.

sabrina.gordon@gleanerjm.com