Caribbean Export OUTLOOK 3rd Edition

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Exporter s ' Ins ights

or the better part of its 107 years, the West India Biscuit Company (WIBISCO) has been one of the region’s foremost exporters. From its Gill’s Road bakery in Barbados, its cookies and crackers first made their way through the Caribbean in the barrels of merchant seamen, through informal arrangements that created new demand across regional markets in the early 1950s. Since then, the company established formal export routes to over twenty countries, with its Shirley , Eclipse and Tea Time brands becoming household names for generations of Caribbean people, at home and in major overseas markets. In line with increased demand abroad, the company grew from a small outfit in Bridgetown to a highly-mechanised, mass production factory with a 250-strong workforce, making it one of Barbados’ largest manufacturers. It also raised capital and realized economies of scale through acquisition by the Trinidad & Tobago based Bermudez Group, whose brands the company also distributes on the local market. In each of these stages of growth,WIBISCO–Caribbean Export’s Exporter of the Year for 2018 – has gained unique insights on opportunities and challenges for regional exporters. The company’s Export Manager, Lisa Murray, sat with Outlook to give an overview of the company and its experience in entering new markets from the Caribbean. Company, Industry And Export Profile Being the sole biscuit and cookie manufacturer in Barbados, WIBISCO has had to compete against regional and international biscuit and snack brands from the outset, with each market throwing up new challenges. “This industry is extremely dynamic and competitive, and we have to constantly innovate to provide new options for the ever-changing demands of our consumers,” Murray said on market trends. Globally, the market for cookies and baked goods is thriving, with worldwide revenues standing at US$27.4bn in 2016, and with market growth forecast at 4.1% through to 2023 1 . But the market is also driven by consumer indulgence, and the dynamics of each jurisdiction are influenced greatly by consumer lifestyles and dietary preferences, which in turn shape product demand. Against these market dynamics, WIBISCO has faced headwinds in overseas markets, and readily admits that it has not always gotten its export strategy right from the start. “There have definitely beenmistakes along the way”, Murray told Outlook , citing examples of uncompetitive retail pricing and brand positioning strategies overseas. In response, the company underwent a successful restructuring campaign at home to drive down manufacturing costs and rationalize staff roles, placing more attention on productivity and brand development. The move paid dividends and allowed WIBISCO to set its price points more competitively amid rising costs, F

and to direct more focus towards product development, all without sacrificing on product quality. The company was also able to invest in equipment that increased plant efficiency and output. Challenges In Export Experiences Maintaining a quality product was just one of WIBISCO’s challenges in exporting. Domestic and offshore regulations have required substantial compliance efforts to move products onto overseas shelves. For many of its markets, WIBISCO must adhere to specific labelling requirements and undergo complicated registration processes. Knowing this, the company invested considerably to support dedicated labelling, and it carried out comprehensive research on registration requirements in each of its markets. It also relied heavily on technical and language consultants to support product registration, and the creation of new stock keeping units for each of its markets. Domestic policy has also had an effect on WIBISCO’s competitiveness both locally and in the export market. In 2012, the companywas impactedheavilywhen the Barbados Customs and Excise Department failed to renew a waiver for the Common External Tariff on vegetable shortening. And while the company successfully lobbied for the waiver to be renewed, and later made a strong recovery, the shock absorption of a 40 per cent import duty for most of that year took a significant toll on its bottom line and export competitiveness. Shipping within the Caribbean has also been a challenge for WIBSICO, given that the company's export business is entirely reliant on marine freight. “Intra-regional freight rates can be quite high and, in some cases, more expensive than shipping to some US ports”, Murray told Outlook . This reality has had a relay effect on market competitiveness, as high transportation costs inflate the cost of the goods in the market. The company also revealed that while local shipping agents understood their plight, many shipping lines did not consider the Caribbean to be a viable region for business, often opting to ship empty containers to more lucrative routes, for example Asia, rather than to work with regional exporters who were trying to become established in new external markets. Despite these challenges, WIBISCO today is a veritable success story of a Caribbean exporter, and it attributes this success to remaining persistent even amid setbacks that made success seem far from imminent. Over its long history, the company has not shied away from taking risks, and has taken strategic steps to mitigate issues on the basis of past experiences. Towards the Future In the near-term, WIBISCO is setting its sights on becoming a truly international brand, confident of the stability that a wider export base offers the company. To