WITH Red Stripe already considering relocating its export business away from
Jamaica, the company says that its decision could be forced should
government not 'level the playing field' over what it complains are
unfair taxation policies favouring the production of spirits.
About 300 jobs are under threat should the export business relocate from
Jamaica. The company has suffered a decline in domestic demand of 2.5
million cases annually and currently produces 5.25 million cases for the
local market and 3.5 million for export. Profits fell 49 per cent
during the financial year ending June 30.
"If we continue to decline and we can't turn around and reduce costs and
margin per case then the discussions have been had for the past year do
we move exports abroad and those discussions are very real. They were
being had even before the tax," a senior Red Stripe executive told the
Observer.
