Red Stripe AR 2006 - Jamaica Stock Exchange

11%
Financial Highlights
D
iageo
is a global premium
drinks company that
trades in over 180
markets around the
world and is listed on both the
London Stock Exchange and
the New York Stock Exchange.
Diageo, the parent company
for Red Stripe, "The World's
Coolest Beer Company" boasts
an outstanding collection of
beverage alcohol brands across
spirits,
wines
and
beer
categories. Red Stripe, the great
Jamaican beer, is numbered
among them.
Red Stripe was first brewed in
Jamaica in 1928, by Desnoes &
Geddes Ltd. and is now available
in some 20 markets around the
world. The flagship brand of the
World's Coolest Beer Company,
headquartered in Kingston,
Jamaica, Red Stripe has earned
the distinction of having some
11 Monde Seleccion Gold Medals
to its credit.
Increase
inTurnover
14%
Increase in
Trading Profit
31%
Increase in
Export Volumes
8%
Increase in
Total Volumes
OUR MISSION
The manufacture and sale of quality
consumer products for domestic and
international markets, with equal
regard for adequate return to our
shareholders, the welfare for our
employees, value and service to our
customers and responsibility to the
communities in which we operate.
OUR values
Valuing each other
Be the best
Proud of what we do
Passionate about consumers
Freedom to succeed
OUR strategy
GROW BEER
GROW BEER
GROW BEER
BEAT THE
COMPETITION
BEAT THE
PLAN
RESULTS
Contents/06
AT A GLANCE
YEAR ENDED as AT June 30, 2006
Statement from the Chairman and Managing Director
2006
$’000
Turnover
Profit before taxation
Profit attributable to stockholders
Profit per stock unit calculated
On net profit attributable to stockholders
Dividends per stock unit
2005
$’000
10,114,372
9,135,115
2,324,401
2,211,847
2,503,442
2,353,054
78.74¢
57¢
83.76¢
77¢
Stockholders’ Equity
Share capital
Capital and other reserves
Revenue reserves
2,174,980
1,495,020
1,114,763
4,784,763
2,174,980
1,336,765
636,199
4,147,944
2
Notice of Annual General Meeting
10
Five Year Statistical Summary
15
Our Leadership Team
20
Directors’ Report
Our Board of Directors
Retooling For Productivity
12
16
24
Corporate Social Responsibility
26
Disclosure of Shareholdings
30
Auditors’ Report
31
Corporate Data
Company Balance Sheet
Group Balance Sheet
Group Income Statement
Group Statement of Changes in Stockholders’ Equity
Group Statement of Cash Flows
Notes to the Financial Statements
29
32
33
34
35
36
37-57
On the Road to Global Success
60
Come-Unity Link Up
64
Enriched Community
Consumer Connection Moments
Building Talent
Proxy Form
62
66
72
77
1
SSttaatteem
meenntt ffrroom
m
tthhee CChhaaiirrm
maann aanndd
tthhee M
Maannaaggiinngg DDiirreeccttoorr
Year ended June 30, 2006
ON BEHALF OF THE BOARD OF DIRECTORS WE ARE PLEASED TO
report on the performance of Desnoes and Geddes Limited (trading as
Red Stripe) for the year ended June 30, 2006. Net profit after tax was
$2,212 million (2005: $2,353 million) resulting in earnings per share of
78.74 cents, 6% below last year’s 83.76 cents. Shareholders will recall
that the previous year’s results included a $406 million gain on disposal
of property, plant and equipment. If that one time gain were excluded,
the current year’s profit after tax and earnings per share would have
shown an increase of 14%.
PASSING OF THE BATON: Hon. Patrick Rousseau O.J.,
outgoing Chairman hands over the reins of
Red Stripe to the new Chairman, Richard Byles.
3
The company paid dividends of 57 cents per stock unit
(payout ratio of 72%) during the year compared to 77
EARNINGS PER SHARE
(CENTS)
STOCK PRICE
($DOLLARS)
cents in the previous year (payout ratio of 92%). The
2006. The Company responded by revamping its
accumulated retained earnings. The stock price as at
commercial and distribution strategy in addition to
June 30, 2006 was $7.79 per stock unit ($9.50 at June
restructuring and refocusing its sales force. This will
30, 2005), resulting in a dividend yield of 7.32%
see Red Stripe, our flagship brand, receiving primary
(8.11% at June 30, 2005). Market capitalisation at June
focus in the forthcoming trading year. All other brands
30, 2006 was $21.9 billion down from $26.7 billion at
sold in the domestic market – Guinness, Heineken,
June 30, 2005. Shareholders equity was $4.8 billion
billion at June 30, 2005, attributable to increased
retained earnings and changes in the carrying value of
Dragon Stout, Malta, Smirnoff Ice - will have defined
DIVIDENDS PER STOCK
UNIT (CENTS)
SHAREHOLDERS’ EQUITY
($BILLIONS)
and complementary roles in our portfolio and in our
consumers’ repertoire.
the Employee Benefits Asset.
INVESTING FOR PRODUCTION
STRONG EXPORT SALES,
The company invested $440 million in the acquisition
EFFICIENCIES
REPOSITIONED FOR DOMESTIC
of property, plant and equipment during the year,
GROWTH
bringing our total capital investment over the past five
Total sales for the year under review recorded a 8%
years to approximately $2.7 billion surpassing the
increase, despite a sluggish start to the year occasioned
company’s commitment to invest $2.5 billion.
by unfavourable weather conditions which impacted
domestic sales. This improvement was a consequence
of strong export sales and a reinvigorated drive to grow
domestic sales. The exports segment led the volume
growth with a 31% increase over the previous year.
Most notable were the sales to the United States which
were 30% above the previous year. Exports to smaller
established and newly developing markets increased by
36% as the company seized several one-off shipment
opportunities. The growth over the last five years for
the export business is now averaging 21% per annum.
4
foundation of the business’ financial performance.
Local volume performance fell below expectations in
prior year’s dividend included a special payment out of
dollars at June 30, 2006, up 15.3% from the $4.2
Domestic sales are vital as it continues to be the
Significant milestones included a new state of the art
MARKET
CAPITALISATION
($BILLIONS)
RETURN ON EQUITY
(%)
bottling line and draught beer plant along with other
necessary
upgrades
in
the
manufacturing
infrastructure and the commencement of the
implementation of an effluent treatment plant. All this
was designed to transform the production capabilities
to world-class standards. We are pleased to report that
the production facility is consistently delivering quality
output in sufficient quantities to meet volume growth
for both the domestic and export sectors.
5
Improved operational efficiencies over this five year
period have made a significant contribution to
DIRECTORATE
CAPITAL INVESTMENT
($MILLIONS)
Significant changes occurred to the Board of Directors
enhancing the competitiveness of our exports and the
during the period under review. One of our Members,
profitability of the Company despite substantial
Mr.
increases in operating costs occasioned by domestic
GENERAL, SELLING AND
ADMINISTRATIVE
OVERHEADS ($MILLIONS)
inflation, devaluation of the Jamaican dollar and rising
prices for fuel, electricity and insurance.
INVESTING IN OUR BRANDS
markets. In the year just ended, total marketing spend
was $1,065 million with $588m spent on local
Brecht,
the
Heineken
board
representative, passed away. During his period of
service, he enriched our Board deliberations with his
experience and training in the field of international
beer marketing. His contribution will be missed. Also,
Finance Director left Jamaica in September 2005 to
take up new duties in Hungary. We record our
GROSS PROFIT MARGIN
appreciation to him for his period of service to the
Company and the Board.
advertising and promotions while $477 million was
spent to grow Red Stripe in overseas markets.
Three eminently qualified persons, Mr. Laurence
Our commercial teams work closely with our business
King, joined the Board. Mr. Laurence Turnbull, our
Turnbull, Ms. Marguerite Orane and Dr. Damien
partners to ensure that our advertising penetrates the
GENERAL, SELLING AND
ADMINISTRATIVE
OVERHEADS AS A
PERCENTAGE OF REVENUE
target audiences, that best value for money is always
obtained and that the right foundations for growth
are embedded.
General, selling and administrative expenses for the
year was $746 million or 1% more than the previous
year. Over the last five years, the company has achieved
significant improvement in this performance indicator,
MARKETING COSTS
($MILLIONS)
new Finance Director came to us from Guinness
Ghana Breweries Limited and replaced Mr. Johnnanes
Van Lierop. Ms. Marguerite Orane is a consultant and
lecturer and Dr. Damien King is a lecturer in
Economics at the University of the West Indies. They
have already distinguished themselves in the
experience and contributions they have brought
to the Board.
such that in 2006, general, selling and administrative
CORPORATE GOVERNANCE
11.7% five years ago. This is a good indication of the
within the framework of the highest corporate
expenses were 7.4% of total revenue, down from
benefits of increased cost and value awareness in
the company.
6
Van
Mr. Johnnanes Van Lierop who served the Company as
Desnoes and Geddes Limited is committed to investing
in its brands both in the domestic and overseas
G.J.
The Company remains fully committed to operating
governance standards. In furtherance of this, we
continued with our local initiatives around responsible
drinking by embedding our Employee Alcohol Policy
7
throughout the organisation and by ensuring that the
This was further testimony to the high level of
thousands of Jamaicans in rural communities. These
OUTLOOK
Marketing Code continue to be key reference points
driving an enriched community agenda that has far-
Clarendon,
Stripe brand to drive sales overseas as there is great
Diageo Code of Business Conduct and the Diageo
for
the
behaviour
business partners.
of
our
teams
and
key
The Audit Committee met four times for the year to
review the Company’s financial reports and the
Company’s risk footprint which seeks to identify and
mitigate strategic, environmental and operational
risks. In addition to the Committee’s work, Diageo and
the Company have a very active internal audit process
which monitors the integrity of the Company’s
financial
reporting
systems.
We
continue
to
reaching positive social impact. The Company’s aim is
to make it easier for our stakeholders to compare our
approach and performance with those of other
companies both within Jamaica and internationally. In
so doing, Red Stripe continued to earn recognition for
of international standards.
the
strictest
the highest corporate donor for 2005 in the $10
million and over category.
programme, some $12 million was contributed
the
construction
and
renovation
of
multipurpose hard courts as well as to upgrade
community centres in six parishes and in one instance,
a Computer Resource Centre was built. In Rae Town,
CORPORATE CITIZENSHIP
In providing the ‘Independent Assurance Statement’
for the company’s published Corporate Citizenship
Report 2005, the Mona School Of Business reported,
“in our opinion, Red Stripe has demonstrated a
of
its
assurance provider.”
report
by
an
external
Town, Unity Hall.
field and a multi-purpose hard-court.
contribute to the restoration of potable water to
Ivan. The total commitment of $100 million was paid
in four tranches of $25 million each with $50 million
being paid during the financial year. This contribution
was used to fund projects which impacted the lives of
We will continue to invest in the marketing of the Red
potential for exports. We are confident that our new
commercial and distribution structure will help return
the sales in the domestic market to a path of volume
growth while driving greater partnership with our
valued customers and consumers.
assistance in cash or kind to many other charitable and
We will maintain focus on controlling costs in order to
health and education to culture, sports and other
sales growth should provide excellent returns to our
nation-building activities. Among those institutions
and charitable causes that benefited were the HEART
Trust NTA, National Blood Transfusion Service, the
Dispute Resolution Foundation, Spanish Town
help drive operating efficiencies, which, along with
shareholders. We are confident that we have the
brands, a strong vision, the values and the talent to
achieve our goals.
Citizens Against Gun Violence, RISE (formerly
We would like to thank the entire management and
and Mustard Seed Communities.
shareholder value. On their behalf, we thank our
Addition Alert), Jamaica Paraplegic Association
even further with the formation of REACH – Red
communities affected by the passage of Hurricane
verification
communities in St. Thomas such as Shanty
complete with perimeter fencing, a scrimmage football
residents and constructed a community playground
development of a set of key performance indicators,
GRI 2002 reporting guidelines and the request for
in St. Elizabeth, Sherwood in Trelawny, and numerous
Proudly, the employees of Red Stripe took the
Red Stripe made good on its commitment to
the incorporation of the widely accepted standard
Brighton/Little Bay in Westmoreland, Lacovia/Slipe
Red Stripe made company land available to the
commitment to the development of best practice in
corporate citizenship reporting as evidenced by the
Hanover,
non-profit organizations and causes, ranging from
towards
meets
in
by the United Way of Jamaica to Red Stripe for being
highlights was the presentation of the Jupiter Award
with Diageo requirements, we are ensuring that our
environment
Woodlands/Blackgate
In addition, the Company continued to provide
Under the Red Stripe ‘Come-Unity Link-Up’
control
communities included Kellits and adjoining areas in
good corporate citizenship. Among the year’s
disseminate the important message of control and
governance throughout the organisation and, in line
8
commitment and emphasis the company places on
commitment to drive an enriched community agenda
staff
for their commitment towards building
many customers and consumers who continue to stand
by our brands and all the suppliers and other
stakeholders with whom we do business.
Stripe Employees Advocates of Care and Hope. This
employee volunteer group activated a number of
community building projects, which included a
Labour Day activity at the Seaview Gardens Police
Station.
_______________________
Richard O. Byles
Chairman
_______________________
Mark McKenzie
Managing Director
9
notice
of annual General meeting
NOTICE IS HEREBY GIVEN THAT the Eighty-Seventh Annual General
Meeting of Desnoes & Geddes Limited will be held at 214 Spanish Town
Road, Kingston 11 on Friday 17 November 2006 at 10:00 a.m. for the
following purposes:
To consider and,(if thought fit) pass the following resolution:
4(a)
“THAT Mr. Nicolaas Vervelde be and is hereby re-elected”
4(b)
“THAT Mr. Peter K. Melhado be and is hereby re-elected.”
4(c)
“THAT Mr. Richard W.T. Coe be and is hereby re-elected.”
1.
In accordance with Article 92 of the Company’s Articles of Association, Messrs. O.K. Melhado, Richard
O. Byles and Paul Gallagher retire by rotation. Mr. Melhado did not offer himself for re-election. Messrs
Byles and Gallagher being eligible offer themselves for re-election.
To consider and (if thought fit) pass the following resolutions:
Audited Accounts for the Year Ended June 30, 2006
To receive the Audited Financial Statements for the year ended June 30, 2006, together with the reports of
the Directors and Auditors thereon. To consider and, (if thought fit) to pass the following resolution:
4(d)
4(e)
“THAT the Audited Financial Statements for the year ended June 30, 2006 together
with the reports of the Directors and the Auditors thereon, be and are hereby adopted.”
2.
Remuneration of Directors
5.
“THAT KPMG, having agreed to continue in office as Auditors, the Directors be and are hereby
authorised to agree their remuneration in respect of the period ending with the conclusion of the
next Annual General Meeting and is hereby approved”.
“THAT Directors’ Fees payable for the year to all Non-Executive Directors of the company be and
are hereby approved.”
Declaration of Dividend
To declare the second interim dividend paid on June 28, 2006 as final. To consider and, (if thought fit) pass
the following resolution:
“THAT as recommended by the Directors, the second interim ordinary dividend of twenty nine
($0.29) per stock unit (gross) paid on June 28, 2006 be and is hereby declared as final making a total
ordinary dividend paid in the year of fifty seven cents ($0.57) inclusive of the first ordinary
dividends of twenty-eight cents ($0.28) per stock unit paid on December 15, 2005 and that no
further dividend be paid in respect of the year under review.”
4.
Election of Directors
In accordance with Article 98 of the Company’s Articles of Association, Messrs. Nicolaas Vervelde, Peter
K. Melhado and Richard W.T. Coe, having been appointed since the last Annual General Meeting, retire
at this Annual General Meeting, and being eligible, offer themselves for re-election.
10
Remuneration of Auditors
To fix the remuneration of the Auditors and to consider and (if thought fit) pass the following resolution:
To fix the remuneration of the Non-Executive Directors. To consider and, (if thought fit) pass the following
resolution:
3.
“THAT the retiring director Mr. Richard O. Byles be and is hereby re-elected.”
“THAT the retiring director Mr. Paul Gallagher be and is hereby re-elected.”
6.
To transact any other business that may be properly transacted at an Annual
General Meeting.
By Order of the Board
Gene M. Douglas
Corporate Secretary
Dated this 1st day of September 2006
Any member entitled to attend and vote is entitled to appoint a proxy to attend and on a poll, vote instead of the
member. A proxy need not be a member of the Company. An appropriate form of proxy is enclosed.
The proxy form must be signed, stamped and deposited at the registered office of the Company situated at 214
Spanish Town Road, Kingston 11 addressed to, “The Corporate Secretary” not less that 48 hours before the time
of holding the meeting. The stamp duty is $100.00 and may be paid by affixing a postage stamp to the proxy form.
11
directors’
report
The Directors are pleased to submit their Report and Audited Accounts
for the year ended June 30, 2006.
The profit of the Company before tax was $2,324,401,000
Net Profit of the Company after tax was $2,211,847,000
Dividends
The Directors recommended that the second ordinary dividend of $0.29 per stock unit (gross) paid on June 28, 2006
be declared as final making a total ordinary dividend paid in the year of $0.57 per stock unit (gross) and that no
further dividend be paid in respect of the year under review.
The Board
Pursuant to Article 92 of the Articles of Association of the Company, one-third of the Directors other than the
Managing Director or the number nearest to one-third, where their number is not a multiple of three, shall retire
from office each year. Messrs. O.K Melhado, Richard Byles and Paul Gallagher will retire. Mr. Melhado did not
offer himself for re-election. Messrs. Byles and Gallagher, being eligible offer themselves for re-election.
Regrettably, Mr. G.J. Van Brecht passed away suddenly in January 2006. Mr. Nicolaas Vervelde was appointed to
replace him. In accordance with article 98 of the Articles of Association, which requires any Director so appointed
to hold office only until the next following Annual General Meeting. Mr. Nicolaas Vervelde being eligible, offers
himself for re-election. On 29 August 2006 Messrs. Peter K. Melhado and Richard W.T. Coe were appointed to
the Board and will also retire at this Annual General Meeting and being eligible offer themselves for re-election.
The Directors of the Board as at June 30, 2006 comprised:
Mr. Richard Byles
Mr. O.K. Melhado
Mr. Mark McKenzie
Mr. Noel daCosta
Mr. Paul Gallagher
Dr. Damien King
Mr. John Randolph Millian
Ms. Marguerite Orane
Mr. Laurence Turnbull
Mr. Nicolaas Vervelde
Chairman
Vice Chairman
Managing Director
Auditors
Messrs. KPMG, the present Auditors have indicated their willingness to continue in office and offer themselves for
re-election.
The Directors wish to express their thanks and appreciation to the management and staff for the work they have
done during the year. A special thank you to the former Chairman, The Honourable Patrick H.O. Rousseau O.J.,
who was the first Chairman since Diageo owned the company. A special thank you also to Mr. O.K. Melhado who
served as a director since 1966.
By order of the Board
On May 15, 2006, The Honourable Patrick H.O. Rousseau stepped down as Chairman and Mr. Richard Byles was
unanimously appointed Chairman of the Board.
Gene M. Douglas
Corporate Secretary
DESNOES & GEDDES LIMITED
12
13
five year
Financial Year
statistical summary
2006
$’000
2005
$’000
2004
$’000
2003
$’000
2002
$’000
Turnover
Profit before taxation
Provision for taxation
10,114,372
2,324,401
( 112,554)
9,135,115
2,503,442
( 150,388)
7,866,540 6,845,998
1,860,864 1,459,601
( 307,906) ( 131,489)
5,650,264
1,100,847
287,797
PROFIT AFTER TAXATION
2,211,847
2,353,054
1,552,958 1,328,112
1,388,644
Dividends
Net dividend cover
1,601,227
1.38
2,163,061
1.09
1,545,044
1.01
1,545,044
0.86
1,012,780
1.37*
940,008
3,550,418
4,792,210
2,809,171
745,412
3,379,297
4,155,391
2,809,171
786,712
3,380,300
4,342,248
2,809,171
1,197,571
3,064,080
2,277
4,459,587
2,809,171
1,606,505
2,778,579
6,830
4,690,394
2,809,171
OPERATING DATA
BALANCE SHEET DATA
Net current assets
Property, plant and equipment
Long-term liabilities
Stockholders’ equity
No. of stock units in issue
PER ORDINARY STOCK UNIT
Profit for the year
Stockholders’ equity
Dividends
Ordinary - interims
- final
78.74¢
$1.70
83.76¢
$1.48
55.28¢
$1.54
47.28¢
$1.59
57¢
-
77¢
-
55¢
-
20¢
-
49.43¢*
$1.67*
15¢
35¢
OTHER
Return on equity
Closing stock price
Number of employees
46.16%
$7.79
734
56.63%
$9.50
750
35.76%
$6.90
802
29.78%
$5.40
732
29.61%
$7.06
552
* Restated on account of dividends paid and IFRS reported profit.
15
BOARD
NOEL
daCOSTA
OF DIRECTORS, 2005-2006
Hon. PATRICK
ROUSSEAU O.J.
NOEL daCOSTA
Noel daCosta is the Caribbean Corporate Relations
Director for Diageo, the parent company of Desnoes and
Geddes Ltd. He has worked for Desnoes & Geddes for over
30 years, filling such roles as Chief Engineer, Brewmaster,
Technical Director and Director of Planning and
Administration. Mr. daCosta is the Chairman of Petrojam
Ltd., and sits on the Boards of several organisations in the
private and public sector, which are involved in
Manufacturing, Commerce, Regulation and Education.
He currently chairs a joint public/private sector, multidisciplinary committee that is preparing a modern Building
Code and Building Act, for Jamaica. Mr. daCosta is also the
President of the Jamaica Chamber of Commerce
16
MARK
McKENZIE
PAUL
GALLAGHER
Hon. PATRICK ROUSSEAU O.J.
Hon. Patrick Rousseau is one of Jamaica's pre-eminent
attorneys. He has had a distinguished career in law, business
and public service and has undertaken major legal matters
in Barbados, St.Lucia, the Bahamas, Cayman Islands and
Trinidad & Tobago.
Mr. Rousseau has extensive experience in the practice of
corporate financing, mining and entertainment and sports
law. He has represented several major international and
local companies and, in his entertainment practice, major
international recording and publishing companies as well as
a number of producers, recording artiste and songwriters.
Mr. Rousseau has also represented international sportsmen.
His wide ranging experience also includes Theatre and the
Film Industry in which he has represented financiers,
LAURENCE
TURNBULL
MARGUERITE
ORANE
RICHARD
BYLES
producers, directors and actors.
Mr. Rousseau serves as a director of a number of other
companies. He has served a number of voluntary
organizations as patron, chairman and board member. He
is also the former President of the West Indies Cricket
Board. He was conferred with the Order of Jamaica in
1976.
MARK McKENZIE
Mark earned his B.Sc. (Hon) in Management Studies at the
University of the West Indies, Mona. Prior to returning to
Jamaica he operated his own business in Puerto Rico and
has over 20 years experience in the fast moving consumer
goods industry. During his career he has held executive
DAMIEN
KING
O.K.
MELHADO
positions in major companies including Procter & Gamble,
Gillette and Coca-Cola, covering markets that includes
Jamaica, Venezuela, Central America and others within the
Caribbean.
Mark sits on the board of the St. Patrick’s Foundation. He
is also a member of the Private Sector Organisation of
Jamaica.
PAUL GALLAGHER
Paul Gallagher, Supply Director, hails from the Republic of
Ireland and has been with Diageo for 13 years. He has a
deep understanding of the industry, garnered from
assignments, which have taken him to some seven breweries
and production facilities across Ireland, the UK and
17
Europe. As Supply Director, Paul has overarching
responsibility for the production and distribution of the
product to customers. That sounds fairly simple until we
examine all the elements that go into it: brewing, packaging,
engineering, distribution, logistics, exports, capital
investment and what Paul calls governance, which is
Quality, Health & Safety and the Environment.
LAURENCE TURNBULL
Laurence Turnbull, Finance Director, has been with Red
Stripe for one year and with Diageo for fourteen years.
During this time he has successfully held senior
management roles in most areas of Finance, in businesses
incorporating many well known brands and has operated
across many different cultures. Laurence originally started
his career with Barclays plc in the UK. Since then he moved
to Pillsbury Foods, United Distillers & Vintners in Hungary
and to Ghana, West Africa where, as Finance Director
Guinness, he supported delivery of a merger between
Guinness and Heineken.
MARGUERITE ORANE
Business woman, consultant, educator, financial analyst,
and long distance runner, Marguerite Orane brings a wealth
of experience and a unique insight to the board of directors.
As a partner in Growth Facilitators, she has helped the
private and NGO sectors to flourish. Marguerite has given
her expertise to clients as diverse as The European Union
and the World Bank. Marguerite Orane has a
Master’s Degree in Business Administration from
Harvard University.
RICHARD BYLES
Richard Byles is President and CEO of Life of Jamaica
Limited (LOJ) and Chairman of Pan Caribbean Financial
Services Limited. Prior to taking up the leadership of LOJ,
he was the President and CEO of Pan Jamaican Investment
Trust Limited (Pan Jam), between 1991 and February 2004.
He is also the Chairman of the National Water Commission
and Harmonisation Limited, a Resort Development
Company, owned by the Government of Jamaica. Richard
holds a BSc. in Economics from the University of the West
Indies and a MSc. in National Development from the
University of Bradford, England.
18
DR. DAMIEN KING
Dr. Damien King is a Senior Lecturer at the Department of
Economics, University of West Indies, Mona. Over the
years he has taught and conducted research on
macroeconnomics, growth, international economics and
economic reform. Dr. King is chairman of Dyoll Group
Limited, and a member of both the American Economic
Association and the Latin America and Caribbean
Economic Association.
O.K. MELHADO
In 1969 Mr. Melhado joined Desnoes and Geddes Ltd. as
Marketing Director. He held this position until 1973 when
he accepted the offer to serve on former Prime Minister
Michael Manley’s personal staff. In 1984 he rejoined
Desnoes & Geddes as Senior Vice President and Chief
Financial Officer and held this position until 1993. In 1988
O.K. Melhado along with his partner Cliff Cameron
established Manufacturers Merchant Bank (MMB). Later
the bank merged with the Pan Caribbean group, a leader in
the banking and financial sectors. Among his other
activities, he is currently Vice Chairman of Desnoes &
Geddes Ltd, Chairman of Air Jamaica and a member of
the Jamaica Tourist Board.
NICOLAAS VERVELDE (Not Pictured)
Dutch National Nicolaas is Managing Director of Heineken
Caribbean, based in Puerto Rico. As managing director he
is responsible for business development throughout the
entire region, within the internal structure of the company
and externally in sales and overall growth. Previously, he
held the position of General Manager at Heineken Dublin
and Marketing Manager at Heineken Holland.
JOHN RANDOLPH MILLIAN
(Not Pictured)
John Randolph Millian, Managing Director of Diageo
Latin America and Caribbean, graduated from Colorado
College with a BA in World Political Economy and got his
MBA at Amos Tuck School of Business Administration,
Dartmouth College, in 1978. He joined United Distillers
Brazil in 1995 as Managing Director, taking over in 1997 as
Managing Director of the merged business of United
Distillers and International Distillers and Vintners in Brazil
HUB. Randolph was a member of the British and
Venezuelan-American Chamber of Commerce and
was Chairman of the Brazilian-American Chamber
of Commerce.
leadership
team 2005-2006
FROM LEFT TO RIGHT: Wayne Lawrence, Marketing Director, Mark McKenzie,
Director, Grace Silvera, International Marketing Director, Paul Gallagher, Supply
Managing Director, Jennifer Foreman, HR Director, Laurence Turnbull, Finance
Director, Noel daCosta, Corporate Relations Director
Shot on location at Superplus, Clock Tower Plaza, Kingston
20
21
WAYNE LAWRENCE
Wayne Lawrence graduated from The University
of the West Indies in 1994 earning a B.Sc. in
Management Studies. He joined Desnoes &
Geddes in August of 1997 as a Marketing
Assistant. Wayne has moved through the ranks
and is now an experienced Marketing
practitioner. He assumed the role of Marketing
Director - Red Stripe in January 2004 with overall
responsibility for the development and
management of the marketing activities for all
brands of the company. Prior to taking up his
present role, Wayne was sent on International
Assignment to Singapore, spending eleven
months at Diageo Asia Venture as Regional
Marketing Development Manager, where he had
marketing responsibilities for Singapore,
Malaysia, Indonesia, Hong Kong and the
Philippines.
making her the first female to be appointed as a
Director under Diageo’s ownership. Holder of a
B.Sc. in Professional Management from Nova
South-Eastern University, she is also among the
cadre of highly trained marketers who facilitate
the Diageo Way of Brand Building (DWBB)
workshops around the world.
Her outstanding contributions to building our
brands and corporate image are well known.
Grace was the recipient of the 2002 Peer Award
for exceptional contribution to the Marketing and
Public Relations industry and was also voted
Jamaica’s “Most Media Savvy Female Business
Executive,” in 2006.
PAUL GALLAGHER*
NOEL daCOSTA*
MARK MCKENZIE*
JENNIFER FOREMAN
Jennifer Foreman graduated from the University
of the West Indies in 1990 earning a B.Sc. in
Economics and again in 1994 with a M.Sc. in
Development Studies.
She joined Desnoes & Geddes in April of 1997 in
the Human Resource function. She has moved
through the ranks and is now an experienced
Human Resource Management practitioner.
Jennifer assumed the role of Director, Human
Resources in June 2002 with overall responsibility
for the Human Resource division of the company.
LAURENCE TURNBULL*
GRACE SILVERA
Renowned for her inspirational leadership style,
Grace Silvera, International Marketing Director,
joined the company in 1995. Over the years, she
has pioneered various leadership positions in
Communications and Marketing. She was
appointed Communications Director in 2000,
22
*See Board of Directors
R
ed Stripe is actively pursuing a strategy
to “Grow Beer, Grow Beer, Grow Beer”
and “Beat the competition and beat the
plan.” This can only be achieved through world-class
standards of performance and the requisite
investment in people, brands, plant and equipment.
Already, the company has achieved success in a
number of initiatives that have enabled delivery on
these objectives. It is no small wonder that the
company has consistently received numerous
prestigious awards for excellence in manufacturing.
According to Supply Director, Paul Gallagher, “At
Red Stripe, we conceived and implemented a
focussed improvement approach in which factors
affecting process performance were targeted,
monitored and systematically improved over time.
The Draught Line, MAG 5, Waste Water Treatment
plant, Multi-packer, ‘Line 4 non-returnable’,
Pasteurizer, Yeast propagation plant are listed as part
of the company's plant and equipment
modernisation.
Construction has begun on the Waste Water
Treatment plant valued at J$300 million. This is
expected to be operational by next year. Red Stripe
is now CFC free, new plants including the new line
are more environmentally friendly, uses less energy
and water and produces less water per unit of
production. We continue to work closely with the
National Environmental Protection Agency (NEPA)
on other environmental issues.
Our returnable bottle system and the beautification
projects in the vicinity of the plant and distribution
retooling for
Productivity
This approach enables us to better anticipate and
mitigate against process interruptions, resulting in
longer runs and improved yield. We saw greater
efficiencies, reliability and quality improvements in
our production facilities on MAG 5 during our
greatest peak periods.”
So Red Stripe continues to employ world class
production techniques and remains a benchmark in
local manufacturing. The company has made
significant investments totalling some $2.7 billion
since 2002 to upgrade ageing plant and equipment
to transform production capability.
centre are also additional examples.
The installation of technologically advanced and
less labour intensive equipment help to reduce
overall production costs, which results in the
company being more competitive.
Year to date On Time and In Full (OTIF)
performance is tracking at 98.7% with a 25%
improvement in OTIF for export customers over last
year. Renewed focus on the whole supply chain has
enabled this new thrust along with improved
efficiency and reliability of production.
Top right: Project Engineer, Paul Jackson and contractors examine the plans for
the $300 million Waste Water Treatment Plant which is under construction
Bottom: The new Keg line (Venture 6) in progress
24
GOVERNANCE OF RED STRIPE
The main Red Stripe board consists of a nonexecutive chairman, managing director, three
other executive directors and four non-executive
directors. In 2003, the company established an
audit committee of non-executive directors which
plays a key role in ensuring the integrity of our
financial accounting and reporting and in
identifying and overseeing the management and
control of risk.
In order to clearly establish the roles and
responsibilities of the board in anticipation of a
opportunities, avoid or reduce risks that can cause
loss, reputational damage or business failure,
support operational effectiveness and enhance
resilience to external events. We have established
a risk management committee which meets on a
quarterly basis to carry out this objective.
The Red Stripe brewery works to the Diageo risk
management standards which cover areas such as
health, safety and the environment. An audit of
the standards this year saw Red Stripe achieving
the highest compliance of all Diageo breweries
around the world.
corporate
social reponsibility
new Companies Act which came into force in
January 2005, a corporate governance subcommittee was established to draw up a board
charter. The charter sets out the role the board
will play.
Red Stripe is actively involved in the Private
Sector Organisation of Jamaica’s corporate
governance committee which has developed a
corporate governance code primarily for
companies listed on the Jamaica Stock Exchange.
This participation demonstrates our commitment
not only to our own good corporate governance
but also to being an ambassador for governance
standards in Jamaican companies generally.
Corporate citizenship issues are the responsibility
of the Red Stripe leadership team on which all
the functions of the company are represented.
RISK MANAGEMENT
Our aim is to manage risk and control our
activities cost-effectively. We do so in a manner
that enables us to take up profitable business
26
POLICY DEVELOPMENT AND
COMPLIANCE
As part of Diageo, we benefit from a
comprehensive collection of world-class codes
and policies which often go further than Jamaican
legislation. Policy development involves referring
to external codes and best practice and consulting
widely both outside and within the business.
Broad dialogue with external groups ensures that
our policies address the legitimate concerns of
stakeholders and, where possible, incorporate
their expectations as to how we should act on
particular issues.
We are subject to the Diageo Code of Business
Conduct which sets out standards on issues such
as conflicts of interest, competition law, insider
trading, corrupt payments, money laundering and
other illegal practices. In addition, the code acts
as an overarching compliance instrument by
including a requirement to comply with the
company’s other main policies. Each year, all Red
Stripe senior managers are required to confirm
compliance with the code and other Diageo
policies. Employees are coached in company
policies and the principles of doing business with
integrity. Red Stripe is not aware of any instances
of bribery among its employees. The full texts of
our policies, summarised below, are available on
the Diageo website.
DIAGEO MARKETING
CODE
The code provides marketing and advertising
practitioners with guidance on the naming,
packaging and promotion of our brands, setting
standards which are in addition to Jamaican laws
and regulations. We staged workshops with both
external and internal stakeholders which included
our sponsors, advertising agencies, media among
others.
SUPPLIER STANDARDS
The high levels we aspire to in our own behaviour
are reflected in the expectations we have of our
suppliers. The standards outline Diageo’s position
on corporate citizenship issues which are currently
being phased into our relationships with suppliers.
EMPLOYEE ALCOHOL
POLICY
The policy ensures that employees fully
understand the nature and effects of alcohol and
sets out the expectations Red Stripe has for their
behaviour.
OCCUPATIONAL HEALTH
AND SAFETY POLICY
The policy sets standards for risk assessment,
occupational health, hazardous substances, first
aid, noise, ergonomics, protective equipment,
emergency evacuation, work permits, visitors and
contractors and accident reporting.
QUALITY POLICY
The policy sets a framework for quality
management systems and commits our business to
continuous improvement in performance.
HIV/AIDS POLICY
This is an enabling policy which sets out the
minimum standards which will be adopted by the
company. The objective is to ensure that
employees’ fundamental rights are not infringed
and ensure that Red Stripe is equipped with the
methodology to implement high quality
HIV/Aids workplace objectives.
EXTERNAL CODES
AND CHARTERS
Our parent company Diageo is a signatory to
certain external codes that define corporate
citizenship principles and standards of conduct.
These include the Business Charter for
Sustainable Development, the UN Global
Compact, the World Economic Forum Leadership
Challenge and the Dublin Principles. Further
information on these codes is available in the
Diageo global corporate citizenship report.
MEASURING PERFORMANCE
We have measures of our progress covering
corporate citizenship and other areas of concern
to our stakeholders. The data required for each of
these measures are collected at least annually. This
allows the integration of corporate citizenship
measures into business strategy and forms the basis
for monitoring performance improvement.
ENVIRONMENTAL POLICY
Red Stripe, a producer of alcohol and nonalcohol beverages and ready to drink products, is
an environmentally responsible company that
operates in a way that protects and enhances our
people, brands and the communities in which we
work and live. We are committed to supporting
environmental sustainability and biodiversity. We
will comply with all applicable legal and other
requirements such as the DIAGEO Global Risk
Management and Licence to Operate Standards
governing Environmental Management and
ensure continual improvement and prevention of
pollution.
27
These aims will be achieved by meeting standards
of performance on those key aspects of our
operations that have environmental impacts.
Management at every level and all employees are
responsible and accountable for taking actions to
preserve the environment. We will encourage our
business partners, suppliers and contractors to
adopt a similar approach and review our policy
annually to ensure its continuing suitability.
Water: We shall source water responsibly, use
it efficiently and set targets for reduction in its use.
Key focus areas:
Packaging: Products and packaging shall be
designed to minimize environmental impact.
Recycled or recyclable materials shall be used in
packaging where feasible.
Greenhouse gases: We shall ensure awareness
of the potential impact of generating greenhouse
gases and set targets for the reduction of
CO2 emissions.
Energy: We shall be aware of non-renewable
energy use and conservation, monitor
consumption and set energy reduction targets.
Waste: Waste shall be reduced, reused, recycled
or disposed of in the most environmentally
responsible manner commercially available.
Targets for reducing waste shall be set.
Effluent: Liquid waste shall not be discharged
in a manner that adversely impacts the ground,
water or air.
Air:Emissions to the air of dust, gas, odours,
vapours or noise shall be minimised.
Hazardous substances: The use of hazardous
substances shall be regularly monitored to ensure
that toxicity and volume are minimized.
Transport: We shall minimize the environmental impact of logistics, taking into account
such factors as mode of transport, vehicle
efficiency, fuel type, driving style and journey
planning.
corporate
Data
BOARD OF DIRECTORS
Richard Byles
Hon. Patrick H. O. Rousseau O.J.
Owen K. Melhado
Mark McKenzie
Noel daCosta
Laurence Turnbull
Damien King
Paul Gallagher
John Randolph Millian
Marguerite Orane
Nicolaas Vervelde
COMPANY SECRETARY
Gene Douglas
AUDITORS
KPMG
6 Duke Street
Kingston, Jamaica, W. I.
REGISTERED OFFICE
214 Spanish Town Road
Kingston 11, Jamaica, W. I.
REGISTRAR AND TRANSFER AGENTS
NCB Jamaica (Nominees) Limited
32 Trafalgar Road
Kingston 5, Jamaica, W. I.
BANKERS
Bank of Nova Scotia Jamaica Limited
Corner Duke & Port Royal Streets,
Kingston,
Jamaica, W. I.
Citibank N.A.
63-67 Knutsford Boulevard, Kingston 5,
Jamaica, W. I.
ATTORNEYS
Patterson Mair Hamilton
7th Floor, Citigroup Building
63-67 Knutsford Boulevard
Kingston
Myers Fletcher & Gordon
21 East Street
Kingston
National Commercial Bank Jamaica
Limited
37 Duke Street Kingston,
Jamaica, W. I.
28
29
disclosure
Shareholdings
Of Directors
As At 30 June 2006
Ten (10) Largest
Shareholders
As At 30 June 2006
Shareholdings
Of Senior Managers
As At 30 June 2006
of shareholdings
as at June 30, 2006
Names
Stockholdings
Richard Byles
Hon. Patrick H.O. Rousseau O.J.
Owen K Melhado
Mark Mckenzie
Noel daCosta
Laurence Turnbull
Damien King
Paul Gallagher
John Randolph Millian
Marguerite Orane
Nicolaas Vervelde
2,106,009
73,100
27,702
31,600
500,000
1,539
Nil
1,539
Nil
Nil
Nil
Names
Stockholdings
Udiam Holdings A.B.
Heineken Finance N.V.
Heineken International Beheer B.V.
NCB Jamaica Proprietory Account
Bardi Limited (In Liquidation)
Trading A/C – Pooled Equity
Fund No. 1
National Insurance Fund
Agamemnon Limited
Jette Limited
Sjim A/C 3119
1,625,549,827
303,454,633
130,578,508
100,773,750
84,255,986
32,915,628
Names
Stockholdings
Mark Mckenzie
Noel daCosta
Jennifer Foreman
Paul Gallagher
Wayne Lawrence
Grace Silvera
Laurence Turnbull
31,600
500,000
Nil
1,539
Nil
Nil
1,539
auditors’
report
KPMG
Chartered Accountants
The Victoria Mutual Building
P.O. Box 76
6 Duke Street
Kingston
Jamaica, W.I.
Telephone + 1(876) 922-6640
Telefax
+ 1(876) 922-7198
+ 1(876) 922-4500
e-mail: [email protected]
31,709,129
29,747,830
26,254,292
23,468,201
Members Of The Audit Committee: Richard Byles - Chairman, O.K. Melhado, Laurence Turnbull, Damien King
30
31
company
32
balance sheet
June 30, 2006
group
balance sheet
June 30, 2006
33
group
34
iNcome statement
year ended June 30, 2006
group
statement of changes in equity
year ended June 30, 2006
35
group
36
statement of cash flows
year ended June 30, 2006
Notes
to the financial statements
June 30, 2006
37
Notes
38
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
39
Notes
40
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
41
Notes
42
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
43
Notes
44
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
45
Notes
46
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
47
Notes
48
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
49
Notes
50
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
51
Notes
52
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
53
Notes
54
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
55
Notes
56
to the financial statements cont’d.
June 30, 2006
Notes
to the financial statements cont’d.
June 30, 2006
57
THE YEAR IN REVIEW
2005
in focus
ON THE ROAD TO GLOBAL SUCCESS
ENRICHED COMMUNITY
CONSUMER CONNECTION MOMENTS
BUILDING TALENT
R
ed Stripe has embarked on a
strategic journey to spur growth
and sustain profitability by
securing the home market while
driving the brand globally. Red Stripe is
driving exports with a plan to accelerate the
growth of Jamaica’s iconic brew over the next
five years.
With a mandate to map the aggressive growth
path of Red Stripe, the International
Marketing Team is on a mission to identify new
opportunities globally and drive breakthrough
performance in exports.
on the road to global
success
ABOVE: Brian Pengelley, (left) Logistic and Distribution Manager, and
Grace Silvera International Marketing Director (right) receive the
Governor General’s cup from His Excellency The Governor General,
Professor Kenneth Hall.
Outside of Jamaica, Red Stripe is now available
in fourteen (14) markets within the Caribbean,
Switzerland, Sweden, USA, France, Japan and
most recently Ireland. Red Stripe is currently
the fastest growing beer in the premium import
lager segment in the USA.
Export volumes of Red Stripe are currently
tracking at 31 percent above last year and just
over 10 percent above planned projections for
this year. The company is on track to post
“double-digit growth” in the USA.
60
On June 17, 2006, the Jamaica Exporters
Association awarded Red Stripe, “The
World’s Coolest Beer Company” with the
Governor General’s Cup for Champion
Exporter 2005 at their Awards Banquet held
at the Jamaica Pegasus Hotel.
BIG STUBBY
Shipping Association’s Paula Pinnock (right) presents the
2005 Shipping Industry Award for the exporter with the
highest tonnage usage of Port Bustamante to Red Stripe’s
Grace Silvera.
Consumers in the United
States now have another
reason to reach for an ice
cold bottle of Red Stripe
Beer.
The introduction of the
new 24 oz bottle, Big
Stubby, is in response to
consumer demand and
our newly upgraded
export facility satisfied
their
request
as
scheduled.
Red Stripe Chairman, Richard Byles (2nd right), inspecting the shipment of Red Stripe set to leave
for Ireland on Friday, June 19, 2006. Looking on are (from left) Red Stripe Supply Director, Paul
Gallagher, Logistic and Distribution Manager, Brian Pengelley, International Marketing Director,
Grace Silvera, and Patrick Gayle, Logistic Supply and Service Manager.
The Jamaican Independence
Day Celebration in Washington DC saw over 6,000 Jamaicans dancing
to the Reggae rhythms of “Bare Essentials”
band and sipping ice cold Red Stripe Beer.
The Red Stripe Ambassador chose this
occasion to present Jamaica’s Ambassador to
the USA, Hon. Gordon Shirley with the first
bottle of the Big Stubby.
Red Stripe "Thirsty Thursday" promotion in San Juan, Puerto Rico
featuring the Saxophonist from the famous Ricky Martin Band
Jamaican Ambassador to the USA,
Hon. Gordon Shirley (left), gratefully
accepts the first 24oz. bottle of Red
Stripe from the Red Stripe Ambassador.
61
Noel daCosta, Corporate Relations Director (2nd) right presents Red Stripe’s cheque
representing the company’s contribution to sponsor five residents of the Seaview and Olympic
Gardens Communities to attend the third Dispute Resolution Caribbean Conference in
Montego Bay on May 25, 2006. Featured in photo are (from left to right): Gloria Taylor ,
Olympic Gardens resident, Paul Hines, Parish Network Coordinator, Dispute Resolution
Foundation, Carol Bernard Madden, Board Secretary, Dispute Resolution Foundation and
Marlene Rodrigues Rowe, Administrator of the Olympic Gardens Peace and Justice
Programme.
Members of Red Stripe’s “Level The
Voices” choir at the launch of REACH
(Red Stripe Employees Advocates of
Care and Hope)
62
Members of REACH renovating
the Seaview Gardens Police Station
Maxine Whittingham, Head of Corporate Relations, Red Stripe presents a
cheque for the sum of Two Hundred Thousand dollars ($200,000) to Jan
Lopez, Finance Director at RISE Life Management Services, formerly
Addiction Alert. The sum represents Red Stripe’s contribution towards the
organization’s endowment fund. RISE is a community-based organization,
which addresses the most critical needs of high-risk adolescents in six inner
city communities.
Dr. Glenda Simms (4th left) and the Bureau of Women’s
Affairs team accept Red Stripe’s donation from Noel
daCosta, Corporate Relations Director (right).
EENNRRIICCHHeedd C
COOM
MM
MUUNNIITTYY
Former US Ambassador and Chairman of the
American Friends of Jamaica, Glen Holden (right)
presents a token of appreciation to Bill Bullard
(left), Corporate Relations Director, Diageo. The
company received the corporate humanitarian
award for contribution to Hurricane Relief.
Mark McKenzie, Managing Director,
Red Stripe (2nd Left) receives the
Jupiter Award from Mr. Elon
Beckford (left) of United Way for Red
Stripe being the highest corporate
donor to the United Way of Jamaica
in the year 2005. Looking on (from left to
right) are Noel daCosta, Corporate Relations
Director, Red Stripe, Jason Craig Watson,
Chairman, Grace Kennedy & Staff
Foundation and Donna Parchment, CEO
Dispute Resolution Foundation.
Courtney Lawes, NWC Vice President Eastern Division (2nd right) presents a token of
appreciation to Mark Mckenzie (3rd right) during the tour and presentation ceremony
held in St. Thomas. Red Stripe presented a cheque for $25 million as the final tranche
of the $100 million contribution to restore piped water to communities across Jamaica
which lost the service after Hurricane Ivan. Also featured in photo are Minister of State
in the Ministry of Water and Works, Dr. Fenton Ferguson (2nd left), and Charles
Buchanan, Public Relations Manager, NWC (right).
63
64
65
brand
brand
activitIes
activitIes
Red Stripe
superstakes
Wayne Lawrence, Marketing Director (left)
and Donna Doran, Financial Controller
examine one of the coveted Red Stripe
Superstakes Trophy at the launch of the
event last November. The event had a huge
turnout and much fanfare providing our
valued stakeholders with an out of this world
experience, under the theme ‘so cool it’s far
out.”
Reggae
Sumfest/05
Red Stripe
Jamaica’s greatest and the world’s best reggae
music festival, Red Stripe Reggae Sumfest
marked another successful year in 2005. With
over 20,000 patrons from all over the world
moving to the beat of Jamaica’s finest reggae
perfomers and an impressive lineup of
international acts, the festival was a fine
showcase for the rapidly growing global profile
of the Red Stripe brand. Among the many
highlights was the performance of the Red
Stripe Big Break winner and the Red Stripe
Scratch and Win promotion. Prizes included a
spanking new Chevrolet Colorado and two
Honda XL 200 motorcycles.
heineken
Jazz & Blues
Heineken, the premium beer, was on the
lips of every beer-loving patron at the
Air Jamaica Jazz and Blues Festival
2006, as it was once again designated,
the official beer of the prestigious event
set against the pristine backdrop of
Cinnamon Hill, in the tourist Mecca of
Montego Bay. With stellar performances
from Air Supply, Patti Labelle and John
Legend, this activity provided the
perfect opportunity to align the premium
brand with yet another first-rate music
event.
Red Stripe light
beach fuTBol 2005
Red Stripe Light Beach Futbol competition
kicked off at the Hellshire beach featuring the
top sixteen local clubs and visiting teams
Argentina and the United States.
66
67
brand
brand
activitIes
activitIes
heineken green
synergy
Red Stripe
champions
cup
Heineken, the world’s premium beer, in
association with the radio station FAME
FM, returned with the third renewal of
the Heineken Green Synergy DJ
Competition. In 2005 Heineken upped
the ante and added a new Caribbean
flavour, as for the first time, the local
winner represented Jamaica in the
Heineken Green Synergy regional finals
in St. Lucia. DJ Slim, winner of the
Jamaican segment received an all
expense paid trip for two to St. Lucia,
plus state-of-the-art DJ equipment
valued at $350,000 and an internship at
FAME FM.
Real Football.
Real Entertainment.
Red
Stripe’s
Managing
Director, Mark McKenzie
(right) and Tivoli’s Captain
Kasi Hinds holds the Red
Stripe Champions Cup aloft
after the West Kingston sides’
come-from-behind 3-2 win
over the defending champions
Portmore United, in an extra
time at the National Stadium.
Also featured in photo is the
Most Hon. Edward Seaga
former Prime Minister and
Leader of the Opposition.
Carlo Redwood, Group
Marketing Manager is joined by
JFF President Crenston Boxhill
and General Secretary, Burchell
Gibson as they examine the
impressive looking Red Stripe
Champions Cup at the launch.
BEER MONEY
A RUN
One lucky winner in the “Beer
Money a Run” competition
receives her prize from Carlo
Redwood, Group Marketing
Manager.
68
SMIRNOFF Experience™ has been leading
the electronic music scene for the past five
years, hosting amazing events in cities across
the world, continuing to support local music
scenes, representing cultural trends and
creating genuinely original grassroot initiatives.
Headlining emerging local talent alongside big
name DJs and live performers, the
SMIRNOFF Experience™ team has been
working hard to create standout events that
have become admired by music-lovers all over
the world.
smirnoff vodka &
smirnoff ice events
The Smirnoff Vodka and
Smirnoff Ice events for 2005
included Smirnoff Experience, Beach J’Ouvert,
Caribbbean Fashion Week
and Smirnoff Exclusive
Events, namely Osmosis,
Special Delivery and Spice.
69
brand
activitIes
D&G malta boys and
girls football
D&G Malta continued its
title sponsorship of the
MALTA/ISSA Football
Competitions for girls and
Under-14 and Under-16
boys. The competition
saw more than 250 teams
competing for the national
titles over a 4-month
period.
GUinness ACtivities
In April, the GUINNESS
RIDDIM on RIMS promotion
was launched. This series of
parties and road shows provided
the opportunity for car stereo
owners to compete against each
other for prizes of cash and
trophies. With 3 major road
shows and over 150 on-trade
parties, the promotion became
the most anticipated activity
between
April
and
June, 2006.
70
The Red Stripe Graduate
Internship Programme
A TALE OF
17
Seated from left: Kerri-Ann Mckenzie, Trecia Campbell, Richard Kelly, Jaeanne Ferguson,
Nadia Kiffin. Standing from left: Benny Yip, Teika Samuda, Yaneice Gentles, Kevin
Turner, Safia Cooper, Nicholas Bogle, Gareth Geddes, Renee Wong, Jermaine Hawthorne,
Marsha Lumley.
72
graduate INTERNS
From the university straight into a role at one of Jamaica’s most established,
and successful companies can be a daunting move for even the most
seasoned. It takes a certain type of individual; energetic, intelligent, hard
working and fearless. The tale of seventeen interns chronicles the
experiences of a group of uniquely talented young men and women who
grasped the opportunity with both hands and took on the challenge.
73
F
rom backgrounds as diverse as
instantly the advantages of being a focussed
well equipped and professional
our interns all have one thing in common.
me to focus more on Logistics and Supply Chain
what was in effect real jobs, they
Kingston city to Hong Kong, China,
They never anticipated the demands,
challenges and real rewards as they
experienced during their internship at Red
Stripe. But, as Jennifer Foreman, Human
Resources Director points out, “the
challenges are in keeping with the
company’s core values”
• Valuing each other
• Be the best
• Proud of what we do
• Freedom to succeed
• Passionate about our
consumers
Grit,
passion,
enthusiasm,
also had to come to terms with
Management which a number of our local
more challenging lessons. Jaeanne
companies tend not to concentrate on. This is
learned not to be so easily
sure to help me in any entrepreneurial endeavours
I undertake.”
“The key is to have an
idea what you want
to achieve, make sure
they are aligned to the
company's goals then
work hard and party
hard.”
—Nicholas
Red Stripe ensured that the interns were exposed
to real global market place
“Saying you can do
something is one thing
but actually doing it is
the real deal and a
totally different ball
game.”
—Safia
conditions where thinking had
to be quick, astute business
decisions make a difference
and competition is stiff. Some
may even call it baptism by
fire, but it was also a learning
disappointed.“Even though things
experience. For Jermaine, the
challenge
was
immediate.
“Someone like me who had no
prior real work experience
change and may not be going the
way that I hoped they would go, I
From left: Tannisha Miranda, Kerri-Ann Watkis.
tried at all times to pursue the
would feel overwhelmed.” For
institution, often referred to as “The University of
path that the company took with the same energy
the participants immersed themselves in the
stretch herself kept on coming: “I did three
it was the practical learning about the brewing
my lines.” Ben learned not to go overboard with
production standards.
Instrumentation Electrical Engineering. I had
energy and intelligence defined
the internship programme, as
Diageo Way of Brand Building and world class
Gareth,
a
focussed
and
determined
communicator had this to say about how the
programme influenced his career path, “I studied
Trecia, the opportunities to
rotations where I was exposed to Power and
never done any course in Instrumentation,
therefore my learning curve was very steep in that
rotation.”
Radio, Broadcasting and Journalism at Carimac
After a series of rotations, many interns were
interests. The programme opened options for a
company they enjoyed the most.
and was a promoter as well, so those were my
marketing career and gave me the opportunity to
focus on marketing as a career option.” For
Nicholas as well the internship taught him almost
74
the internship was, and provided
individual, “In essence the internship has helped
already aware of what aspect of working for the
In speaking to the interns the consistent message
was that Red Stripe is indeed a learning
Red Stripe” in the internship circle. For Richard,
process. “Basically, I did not know anything about
brewing. I thought it was a simple process but
given the competitive nature of the beer market
and the high performance culture, Red Stripe
and vigour that I would have if it were done along
work,
a
common
misconception
about
productivity that many inexperienced workers
have and to “keep life balanced.”
helped to change my way of thinking.” For Teika,
Candidates who have been in the the programme
core values and the Diageo Way of Brand
management roles at Red Stripe. Marsha had this
what impressed her most at Red Stripe were the
Building. “These were not only helpful in the
work environment at Red Stripe, but were also
applicable in my personal life.”
While Renee, Kevin and Nadia all remarked how
from its inception such as Marsha are now in key
to say: “From the internship programme I have a
better understanding of my capability and I am
more confident of my worth as an individual both
professionally and personally.” Safia, who is
Brand Manager, RTDs and Spirits sums it all up,
75
“I now know that when faced with any challenge
this are Kimberly Lawson-Lew, Public Relations
something is one thing but actually doing it is the
Watkis, Marketing Co-ordinator, Caribbean
that I can actually do it. Saying you can do
real deal and a totally different ball game.”
Red Stripe prides itself in it’s commitment to
people development and building
talents. The skills and training
garnered at Red Stripe have helped
and Advertising Manager at Wisynco, Kerri-Ann
Broilers and Tannisha Miranda, Brand Assistant,
I/We……………………………………of…………………………………………………
Being a member/members of Desnoes & Geddes Limited, hereby appoint
participants for the world”.
………………………………………….of ……………………………………………….
endorsed by Kim who added “I
Or failing him, ………………………….of ………………………………………………
Foreman, “the internship programme readies the
“I had always heard
that Red Stripe was a
This statement was categorically
company but I have always heard that Red
internship making them more didn’t realize why until I Stripe is a good company, but I
marketable to the extent that quite experienced it first hand did not realize why until I
a few have moved on to forge
experienced it for myself ”.
careers
in
other
companies. Perfect examples of
for myself.”
PLACE
$100.00
STAMP
HERE
Jamaica Biscuit Company. According to Jennifer
to develop the candidates of the good
successful
proxy
FORM ofactivites:
red stripe
brand
—Kimberley
Lawson-Lew
As my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of
the Company to be held on November 17, 2006 at 10:00 a.m. and any adjournment thereof.
Dated…………………………………
Signed ………………………………..
Please indicate by inserting “X” in the space below how you wish your vote to be cast. If no indication
is given your proxy will vote for or against resolution or abstain as he/she thinks fit.
RESOLUTIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.
For
Against
Adopting the financial statements and reports of Directors and
Auditors thereon
Approving Directors’ Fees for Non-Executive Directors for the year
Approving the Declaration of final dividend
Re-electing Director Nicolaas Vervelde
Re-electing Director Peter K. Melhado
Re-electing Director Richard W.T. Coe
Re-electing Director Richard O. Byles
Re-electing Director Paul Gallagher
Fixing the remuneration of the Auditors
Notes:
1.
If a member is a corporation, this form must be done under common seal or under the hand of
an officer or attorney duly authorised in writing.
2.
76
To be valid, this form must be received at the Registered Office of the Company, 214 Spanish
Town Road, Kingston 11, no later than 10:00 a.m. on 15 November 2006.
signals a new
and exciting phase in the evolution
of the Great Jamaican Beer.
As the theme of the new
advertising campaign,
suggests living life to the fullest.
It inspires and encourages us to
embrace life with a passion.
is also a celebration of
the Jamaican culture and spirit, and
embodies the courage, vitality and
resilience of our people.
Produced by Red Stripe
Board, staff and intern photos by Franz Marzouca
Product photos (inside) by Simon Levy
All other photos: Collin Reid
Design: James Hill Design
Printing: Pear Tree Press Limited