Carreras Limited (CAR) has advised of its intention to expand product lines to include cigarette lighters, rolling paper, shavers and razors.
The company said in a notice, on January 7, that the initiative is part of its strategic plan for expansion, focusing on the sale of the new products.
Carreras said it anticipates that the product roll-out date for the new products will be January 18, 2021.
However, the company said nothing about the investment or the source of the new products, local or imported.
Expertmarketresearch.com reports that the global cigarette lighter market attained a value of US$6.1 billion in 2020, driven by the rising demand from the emerging economies.
The site states that, aided by the technological advancements, the market is expecting to witness even more growth in the forecast period of 2021-2026, at a CAGR of 1.7 per cent.
British American Tobacco Plc owns a majority stake in Carreras, which distributes the Pall Mall, Craven A and Matterhorn brands of cigarettes. However, the Jamaican company has been complaining of competition from illegal sources, which it says has impacted sales.
At year ending March 2020, Carreras grew its annual revenue from JM$12.9 billion to JM$14 billion. However, since the onset of the pandemic sales have fallen to JM$6.15 billion at the half year ending September 2020, down from JM$6.64 billion in the same period in 2019. Half-year profit also slid, from JM$1.74 billion to JM$1.56 billion.
In its six-month report, Carreras’ management said that the company is working on cost containment, recovering legal volumes, and lobbying the Jamaican Government over excise charges.