John Myers Jr., Business Reporter

A grapefruit cut in two. Jamaica Citrus Growers wants to introduce two new grapefruit drinks under its Juiciful brand. - File

Jamaica Citrus Growers (JCG), owners of the Juiciful brand, is to introduce two new juice lines in two months, but says the plan is contingent on funding.

The cash-strapped operation is seeking $70 million of fresh capital to boost its business, and is in talks with the Agriculture Ministry in the hope of securing cheap financing.

But if those talks fail, JCG chairman John Thompson said the company, which manufactures boxed juices, would turn to its bankers and other financiers.

New grapefruit line

Although the new products have not yet been fully developed, Thompson said Juiciful would roll out a new grapefruit juice line, as well as a grapefruit juice blend in two months, saying, if successful, the company would be first to market with the grapefruit line of juices.

Other grapefruit-based beverages are on the market, but in the form of sodas.

"We are about to do public tastings and get market reaction, but I am sure for health-conscious people there is a niche market for grapefruit," said Thompson.

"It is a refreshing quencher and in the hot summer months here, I think it would be ideal."

Processing plant

JCG already processes grapefruit at its Bog Walk, St Catherine plant where it produces grapefruit concentrate for Pepsi Jamaica, makers of the carbonated and grapefruit-based Ting.

But Thompson said the factory had an oversupply of the fruit - it now processes 10,000 boxes annually - and that its expansion into grapefruit juices would eat up the excess raw material.

It would also allow the plant to make use of its under-utilised capacity.

The Bog Walk operation has a capacity of 1.5 million boxes of citrus annually, but is now operating at one third that capacity, or approximately 500,000 boxes.

Each box of citrus is equivalent to about 90lb of fruit.

It produces 1,325,538 crates of chilled juices and milk annually.

Juiciful controls an estimated 30 per cent of the juice market, according to Thompson, who says the company sources supplies entirely through contract arrangement with local farmers.

Turnover

Its turnover is in the region of $600 million to $700 million, Thompson said.

The company is currently unable to meet its financial obligations, such as paying farmers on time for fruits supplied, forcing it to borrow.

It has been in this position before, and at that time also turned to the Agriculture Ministry.

But the JCG chairman insisted that the operation was solvent, and not about to fold.

The assets of the JCG - which is a private company owned entirely by the members of the Citrus Growers Association - were valued more than its liabilities, he said.

The JCG already owes the Agriculture Ministry $50 million for which it has rescheduled repayments and is looking to borrow an additional $70 million which, Thompson says, would allow it to restructure its operation, build a marketing campaign to increase its presence in the market, establish a depot on the south coast to improve distribution of its products in that region, and explore other marketing opportunities in the hotel sector.

Agriculture Minister Dr Christopher Tufton has insisted that the JCG present a viable business plan outlining how the monies would be spent, as a condition of the new loan even being considered.