IPO to fund expansion opens December 29

Spur Tree Spices has revealed plans to launch frozen foods and a variety of canned beans as it goes into expansion mode, following its initial public offer (IPO), which opened today, December 29. 

Spur Tree specialises in the production, distribution and sales of premium quality ready-to-use marinades and sauces, primarily for export.

It is offering approximately 335.3 million ordinary shares up for purchase in the IPO that is scheduled to close on January 19. The total amount to be raised if the invitation is successful is $335.3 million.

The sauce manufacturer plans to use the money raised from the IPO to fund capacity building, innovation, and expansion and repay existing debt. 

In detailing its expansion plans, Spur Tree said: “On the horizon are plans to launch Jamaican patties, chicken wings, frozen festivals, frozen ripe plantain, frozen cassava and several varieties of canned beans: butter, red, pigeon peas.” 

Though the company sells locally to numerous hotels, restaurants and supermarkets, the major focus remains exports, with approximately 95 per cent of revenue generated from export markets.

Spur Tree Spices launches IPO to fund market expansion

Spur Tree has exported to the USA, Canada, UK and the Cayman Islands for over 10 years and, in more recent years, has expanded its exports to Costa Rica, Panama and Australia.  

In each of the last five years, Spur Tree Spices has increased revenue by over 20 per cent. Total revenue for the 2020 fiscal year was over $700 million with over 90 per cent generated from export sales. This was an increase of 22 per cent over the prior year. 

Spur Tree’s undertaking to increase profitability has resulted in J$86 million in Profit Before Tax, for the period ending August 2021 and $94 million for the period ending in September 2021. 

One year after starting operations in 2006, Spur Tree moved from supplying bulk jerk seasoning to a single food service customer in New York to consolidating pallets of jerk, curry seasoning and pepper sauce and being listed in three locations of Jetro/Restaurant Depot in the US.

In recent years the brand has expanded its product line to include Jamaican staples, such as Ackee, Callaloo, Festival Mix, Juices, and other related products

Spur Tree chairman Metry Seaga is bullish about the future of the company. 

“Spur Tree Spices will keep on innovating and expanding to provide customers with quality products at a great price, both locally and overseas. We are here to satisfy anyone who yearns for an authentic Jamaican meal or who simply wants to savour food with a Caribbean flavour.”

As the company strives to meet growing demand, Seaga also affirmed that attention to quality is unrelenting.

“We are FDA approved and our systems and processes have been successfully audited by the FDA on several occasions. This has enabled us to continue to access and grow revenue from our largest market, the United States of America.”

The manufacturer is also SQF (Safe Quality Food) certified. 

Spur Tree CEO Albert Bailey

In relation to its IPO, Spur Tree has reserved approximately 158.1 million ordinary shares for specific categories of persons, including Spur Tree Staff, distributors of products of Spur Tree, suppliers of raw material to Spur Tree and Spur Tree non-executive directors. 

The remaining shares, along with any reserved shares not purchased, will be available to the general public. 

All shares, including the reserved shares, will be offered at a price of J$1.00 per ordinary share. Stakeholders now have the opportunity to invest in a company that has a proven track record of success.

CEO at Spur Tree, Albert Bailey, shared, “I am delighted about the prospect of inviting a wider stakeholder group into the business, through this IPO. This is also an opportunity for people who value our products to become a part of the company. Our staff, customers, distributors and our suppliers will become shareholders”.

A portion of the proceeds will also be used to fund the invitation and listing expenses associated with the IPO. 

Applications for the Spur Tree Initial Public Offering will only be accepted electronically through the Sagicor Investments Jamaica eInvest platform.

Spur Tree Spices launches IPO to fund market expansion

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