Consolidated Baking Company, operating under the Purity brand, is actively seeking the ideal product mix to drive its next phase of growth. As competition in the bread market intensifies, Purity is focusing on diversifying its product offerings and reducing its reliance on traditional bread products, which still contribute significantly to its revenue.
Despite its efforts to adapt its business model, Chairman and Managing Director Anthony Chang admits that the company’s current product portfolio has yet to achieve 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 the percentage of sales from products outside of bread is still not where we want it to be,” Chang told the Jamaica Observer following Purity’s recent annual general meeting.
The bread market, a long-time stronghold for Purity, is now facing challenges from low margins and heightened competition. As other industry players pursue growth in this mature market, Purity has opted to expand its portfolio rather than rely solely on bread. The company’s latest addition is the Vybez Bar, a protein snack under the Miss Birdie brand.
Despite an increase in distribution points and improved sales, Chang notes that these gains represent a small portion of overall sales. He revealed that the contribution from bread sales has decreased over the past four years, although specific sales targets were not disclosed.
Purity, renowned for its bread, biscuits, buns, pastries, and snacks, reported a $22 million loss for the second quarter of 2024. This loss is attributed to lower revenues and rising expenses, including higher salaries and increased selling and distribution costs as the company works to boost sales of both new and existing products. Since 2020, Purity has introduced several new items, including the Miss Birdie Rock Cake and the Miss Birdie Amaaazin Cinnamon Raisin Loaf, to diversify its offerings.
Looking ahead, Purity plans to 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 need to drive sales for the products already on the market,” Chang said. The company aims to boost sales of its existing products in the short term while preparing for future growth.
To achieve its growth objectives, Purity recognizes the importance of investing in talent, management, and other resources. “We made adjustments to our business model, but now we need to fuel that growth. We have strategies in place, but we need to support them with talent, management, processes, and other resources. That’s what we are working on now, and we are confident that it will come over time,” Chang stated.
Talent acquisition remains a significant challenge for Purity, reflecting a broader issue in the private sector. The company is revising its approach to human resources and market strategies to better align with current needs. “Getting the right talent, from truck drivers to salespeople, is crucial,” Chang emphasized. “We have started to see some improvements, and we expect things to get better as we address these challenges.”
As Purity continues its search for the optimal product mix, the company remains committed to innovation and strategic investments, positioning itself for sustained growth in a competitive market.
