Demand for the packaged ‘Demerara’ branded sugar produced by the Guyana Sugar Corporation (Guysuco) has outstripped production, with the 7000 tonnes of packaged sugar this year unable to satisfy the market demand.
Guysuco in 2003 introduced the ‘Demerara Gold’ packaged sugar, and sales reached almost 600 tonnes that year. But this year’s sales of packaged sugars have increased to 7000 tonnes, which is still only a fraction of the company’s bulk production, since direct consumption of brown sugar locally is 22,000 tonnes and there is a potential Caribbean market of 80,000 tonnes, according to a market assessment.
In 2007 “we are selling everything,” said Director of Marketing and Trade Nisa Surujbally at her Ogle office Friday in reference to the company’s packaged products, adding that they were trying to keep their customers satisfied and at the same time maintain a growing interest in their product.
“They all want more, which we cannot give,” said Surujbally, although she clarified that customers were being advised that when the upgraded Skeldon factory came on stream their needs would be fully met.
Surujbally said, “We feel pretty confident based on response” that the company would be able to transition quickly to meet demand when the supply improved. Guysuco receives on average five requests per day from new consumers, and according to the marketing director, “It is quite a task to tell people, no.”
Guysuco on average produces some 330,000 tonnes of sugar and plans to move towards over 450,000 tonnes when the US$180M Skeldon Modernization Project which will have enhanced packaging capabilities comes on stream by the first crop next year.
The company attributes its success to its good customer relations, which combine quality products with service.
Markets like Nevis and T&T are responding well to the Demerara Brown Sugar brand as well as to the small tea-bag sized sachet sugars which were now being introduced to Caribbean destinations, along with the Demerara White and Gold. Antigua was said to have good opportunities for expansion.
In demand as well were the 500g packs, which were not available, along with the 900g, which were currently available. In the future consumers can expect ‘Genuine Demerara Cane Sugars’ in sizes ranging from the 5g single-serve sachets for coffee/tea drinkers to the convenient 25kg bags for the hotel/restaurant operators, according to information from the company.
Surujbally said that the intention was to not sell any bag of sugar in bulk, since Guysuco would benefit from having a branded product.
Guyana’s bulk sugar is bought by the European Union (United Kingdom, Portugal, France, and Finland), the United States and Trinidad and Tobago, while bagged 50kg sugars and packaged sugar are sold domestically and to T&T, Suriname, St Lucia, Grenada, Antigua, Dominica, Barbados, St Vincent,
St Kitts and Nevis, Jamaica, Curacao, Anguilla, British Virgin Islands, US and St Maarten.
Demerara Gold, Demerara White and Demerara Brown Sugar can be found in over 20 countries (through direct and indirect buyers) and this year the product was introduced to Australia and New Zealand. And Guysuco’s molasses is in the award-winning El Dorado Rum, by Demerara Distillers Limited (DDL) and rums produced in Antigua, Grenada, Barbados and St Lucia.
Historically, the corporation concentrated its efforts in producing raw bulk sugar for the European Union (EU); however with the new market realities, where companies are stealing opportunities to make ‘big dollars’ from registering popular brands not their own, Guysuco is capitalizing on this previously untapped resource.
“This product can sit anywhere in any part of the world,” the Marketing and Trade Director said, speaking of Guysuco’s packaged ‘Demerara’ branded sugars.
The packaged sugars are manufactured in compliance with the Quality Management System of ISO 9001 2000 and this has given the company leverage in marketing the product in new markets. Guysuco is the first sugar producer in the region to achieve ISO’s Quality Management System certification.
Market Development Manager Roxanne Greenidge explained on Friday that there would be a concentration on more promotions to build brand awareness and to identify Guyana with the brand ‘Demerara.’
Brown sugar from countries like Mauritius are usually branded and sold as ‘Demerara’ sugar. Currently, Guysuco’s application for the registration of ‘Demerara Gold’ in Canada is being challenged by a company that packages Mauritius sugar with a description leading the customer to believe that the sugar had been produced in Guyana, said Surujbally. Companies like Edward B. Beharry and Company have faced similar brand battles in Canada.
According to information from the company, Guysuco intends to recapture the recognition of Demerara Sugar as being associated with Guyana through both marketing and legal initiatives.
Brand protection is key in the brand awareness drive, and the brand is registered in every market where the company launches its ‘Demerara’ sugar; even domain (online) registration is being done, so that potential customers are directed to its website with key search words that are linked to its products. Surujbally said that the company’s website was being updated and upgraded with a major emphasis on marketing and corporate branding.
Guysuco intends to develop a wide range of sugars and gradually migrate its 50kg bagged bulk sugars into value added retail branded products. Also the first project to be funded by the EU under the Accompanying Measures for Sugar Protocol countries affected by the changes in the EU Sugar Regime, is the construction of a state-of-the-art sugar packaging plant annexed to the factory at Enmore, according to information from the company. The corporation will receive close to five million euros to finance this project.
From July 1, 2006, the European Union began implementing price cuts, with a 5% reduction in sugar prices. This equates to a revenue loss of $1B per year, according to information from the corporation. The final price cut scheduled for 2009 will be 36% or $8B lost to the industry.
