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I last wrote on the now Organisation of African, Caribbean and Pacific States (OACPS)-European Union (EU) post-Cotonou negotiations on June 17 following the meeting of the lead negotiators, EU International Partnerships Commissioner Jutta Urpilainen and the OACPS’ Minister Robert Dussey of Togo, on June 12. At that time, the lead negotiators were anticipating the conclusion of the negotiations by the end of July and were planning to meet again before the end of June.

The negotiations continued, and I saw the EU Parliament weighing in to indicate that the members expected the institutional framework to continue having a role for the joint OACPS-EU Parliamentary Assembly. We saw that under the revised OACPS Georgetown Agreement, the OACPS will have its own formal Parliamentary Assembly.

It was necessary for the OACPS to have a meeting of its Ministerial Council to review the post-Cotonou negotiations, among other things. This meeting was held virtually on July 28, chaired by Gambia. The ministers approved negotiating texts and provided guidance to negotiators. The Council of the OACPS Caribbean Forum (CARIFORUM) met prior to this meeting.

It appears that the lead negotiators met during July. The negotiations clearly were not concluded in July and will now continue in September after the customary August summer break.

This extension, it seems, was due, among other things, to outstanding sensitive human rights and migration issues still to be resolved, which, in some news reports, are seen as primarily between the EU and Africa, although they also apply to the Caribbean and the Pacific. Note, too, that the EU and Africa are still consulting on the EU’s new Africa Strategy, which it is still hoping will be adopted at a summit with Africa in Brussels in October, COVID-19 permitting.

In an article reproduced on the AllAfrica news website, a European Commission spokesperson is quoted as informing that the text of the new post-Cotonou agreement is 95 per cent completed. It was noted, however, that the last five per cent could pose the most difficulties.

As I previously mentioned, the 2000 Cotonou Partnership Agreement (CPA), which should have expired in February, was extended to December 31. The new timetable is now indicating that the post-Cotonou negotiations will not be concluded until about November. You may recall that the signing ceremony is to be held in Samoa, which now may not happen until mid-2021. This means that the CPA will be further extended to facilitate conclusion of the negotiations and the procedures for signature of the new agreement.

The New EU Budget

Tanzania assumed the six-month presidency of the OACPS and chair of the Committee of Ambassadors on August 1 and is now expecting to oversee this final phase of the post-Cotonou negotiations.

The EU’s new long-term budget, 2021-2027, was finally approved at a marathon EU Council Meeting, July 17-21. It included financing for the EU’s COVID-19 Recovery Plan.

It is reported that developmental non-governmental organisations are concerned about the provisions for overseas development assistance. Recall that the European Development Fund, from which the OACPS was funded, is now incorporated into the Neighbourhood, Development and International Cooperation Instrument. There is concern that this could put OACPS financing at risk.

The departing EU ambassador to Jamaica, Malgorzata Wasilewska, in an interview with The Gleaner published on July 28, gave the assurance that EU aid allocations to the Caribbean, including Jamaica, would not be reduced, especially in light of COVID-19. I hope this will hold true for Jamaica and the rest of the CARIFORUM member states under the EU’s new budget arrangements and the new OACPS-EU agreement.

The Caribbean OACPS Negotiating Team

There will be personnel changes in CARIFORUM. Guyana and Jamaica are the CARIFORUM representatives on the OACPS Central Negotiating Committee. Following the protracted issuing of general election results in Guyana, the opposition People’s Progressive Party was declared the winner. The new president, Mr Irfaan Ali, has appointed Mr Hugh Todd as the minister of foreign affairs. General elections are now also due in Jamaica on September 3.

Suriname assumed the chair of CARIFORUM on July 1 for one year. General elections were held in Suriname on May 25, which also led to a change of government. As of July 16, the new minister of foreign affairs, international business and international politics is Mr Albert Ramdin, who is a seasoned diplomat, having also served in both the CARICOM and OAS Secretariats. Thus Suriname will oversee the Caribbean’s participation in this final stage of the negotiations.

Come September-October, we will have a better indication of the schedule for the conclusion of these negotiations. At this time, we will, hopefully, also have a summary of the key provisions of the agreement, particularly from the Caribbean protocol.

This article which was originally published by the Jamaica Gleaner was submitted by Elizabeth Morgan, Specialist in International Trade Policy and International Politics.

The global video game industry reached one of its highest scores due to the COVID-19 pandemic. As countries around the globe went into lockdown mode, the demand for gaming went up!

And according to founder and CEO of the Powell Group, Jay Powell, some publishers within the industry saw a 500% increase in revenue during the first few months of lockdown! This was definitely a massive win for the industry, which Mr. Powell estimates is already valued at 90 billion dollars.

“This sounds horrible to say, but COVID has been really good for the video game industry. Obviously when everyone is confined at home they aren’t going out. And television and movie production basically stopped, so we have seen a gigantic influx of money into the gaming industry,” Mr. Powell said.

The 20-year expert made this point during a webinar organized by the Caribbean Export Development Agency and the United Kingdom Trade Partnership (UKTP) Project.

Speaking on the topic Opportunities for the Gaming Industry – Present and Future Trends, Mr. Powell outlined steps that Caribbean game developers could take to help them reach the next level in the global industry. The advice couldn’t come at a better time as Caribbean Export and UKTP are providing assistance to regional gamers so they could participate in IndieGamesBusiness – The San Francisco Summer Edition 2020, the longest running virtual matchmaking event in the game industry.
Mr. Powell, who runs a full service consultancy in the United States (US) which helps developers, publishers and other industry players to grow and succeed in the world of video games, gave several recommendations aimed at developing the Caribbean’s industry.

1. Strengthen The Caribbean’s Ecosystem

In the quest to advance the regional game industry, Mr. Powell strongly recommended that Caribbean gamers, whether they functioned as freelancers or companies, needed to come together and represent themselves as a regional bloc. Noting that governmental support was a huge help, he stressed that collaboration and association were even more critical to establishing a Caribbean gaming ecosystem.

“Do anything you can do to be working together, to be communicating and to know each other exist. You are going to get a much better effect for the region as a whole,” he suggested.

Admitting this could be a challenge as industry players were located in different islands, he added, “Do meet ups, work with the International Game Developers Association (IGDA), have that communication pipeline together and work together to build each other’s strengthens and misses. These are absolutely key for getting some bigger contracts in and getting interest and recognition from outside the region.”

He also advised trade organizations to play a critical role in promoting the Caribbean as a regional bloc especially at trade shows. “You are not going to be able to grow internally. You got to get your studios [and different gaming companies] in front the rest of the world. Help them to be promoted as an entire region at these shows, it will get them in front more companies and it’s much more cost effective,” he said.

2. Set Up A Discord Server

Mr. Powell urged industry players who were creating their own games to set up a Discord server. The free mobile and desktop app primarily used by gamers around the world facilitates instant messaging, VoIP (voice calling via the app) and digital distribution which are all perfect for building game communities.

“If you are creating your own game right now, you need to get it up and going.”

3. Sign up to digital conferences and trade shows

The industry expert said there was an argument that the lack of physical trade shows caused by COVID-19 would be detrimental for independent game developers. Disagreeing with that view, he said: “The digital conference space is an absolute plus for you to have access to.”

Not only are they more cost effective, he said they were great for intelligence gathering and networking. He advised participants to find out who was attending or speaking beforehand so they could set targets and book strategic meetings.

“Digital conferences are fantastic opportunities for you as developers and for folks who are trying to get into the industry or even to learn about the industry. When it comes to these digital events it is very easy to just sit down and do basic research even before you get to the meetings. You can go through the attendees and figure out who you should be talking to.”

4. Regional Gaming Courses should include a Business Component

Mr. Powell strongly advised that a wholistic approach be taken to regional video game education and certification. “If the schools are teaching art, code and anything else with the objective of giving a video game certificate, they need to absolutely include at least a course on business, marketing and production,” he outlined.

The expert stressed that beyond having the skills to design a video game, it was equally necessary to know how to sell. He argued that countries may be “turning out fantastic artists, but if those artists don’t know how to sell their work, and they don’t know how to approach the industry from a business standard or get in front of the right people who are hiring them, it won’t do them any good.”

5. Going to market requires self-promotion & creating a community

“If you are building the entire game yourself, hope for the best but plan for the worst. You have to assume you are not going to get a publisher and you will have to do this on your own.” That’s the advice Mr. Powell gave to Caribbean developers who are thinking of taking their games to market.

He urged them to aggressively promote their creations. “The minute that you have a screenshot, a gif, a video or anything visual to share, you need to be on social media: Instagram, Tik Tok, Facebook. Point all of that back to your Discord server because you as the developer need to start building your community… all the way from ‘here is my screenshot’ to when you are ready to talk to a publisher!”

Mr. Powell also recommended developers who wished to be taken seriously get a webpage, a business email and have a presence on LinkedIn. “Don’t send me an email from your gmail account. A legitimate company, that wants to be taken legitimately, needs to have a webpage and your email needs to come from the URL of that webpage.”

6. What to expect after pitching to a publisher

“You are ready to talk to a publisher once you have a demo to play!” Mr. Powell encouraged regional game developers to send their demos to everybody. However, he warned them that typically most publishers’ would respond by stating how wonderful the demo was and that they would like to see more. He told regional developers they should expect to repeatedly get this answer until someone signs.

“Don’t let it disturb you but more importantly, you can’t let it get you over excited because that is just what they do,” he warned.

Additionally, Mr. Powell urged developers to follow up weekly as there was a 30% response rate, however he cautioned that signing was generally a long process which could take up to 3 months or more.

7. For feedback the Internet is your best critic

Mr. Powell told game developers not to expect feedback from publishers and if they received any, it would most likely be from inde-publishers who had been through the gaming process.

If you want feedback, “you have to be careful with the whole friends and family bias. The internet is the best, its brutal. If people think it sucks, they are going to tell you they think it sucks. You got to have thick skin,” the video game industry expert stressed.

For honest feedback, he said to try sharing demos with IndeGame communities on Discord as well as streamers who liked to play IndeGames.

Mr. Powell also told independent developers who wished to post their games on Google Play: “Unless you got the marketing money and user acquisition money, it is just not going to get seen. There are so many games that get released every single day. I never recommend an ‘inde’ or small team that is unfunded to do a free to play mobile game.”

For PC games, he said developers should check Stream, Epic, GOG or Itch.io.

8. Capture outsource contracts by being original

Mr. Powell urged regional developers going after outsource contracts to demonstrate to potential clients that they have the experience and an understanding of the game industry. For those who just left school, he stressed that they highlight their passion and understanding of the industry.

But simply being original is even more critical to scoring an outsource contract. “You need something original to show because that is going to be what gets everybody interested. It is very important,” Mr. Powell said.

9. Target non-traditional markets

When it comes to attracting consumers, regional gamers should aim to have local presence but they should also cast their nets in non-traditional markets internationally. According to Mr. Powell, the Internet does not care where you are! In fact, he pointed out that markets were segmented more by language than anything else.

He lamented that people often went after the US and European markets and recommended that Caribbean developers consider targeting Latin America. “You got a huge market that for the most part is underserved… Most developers and publishers don’t think about Africa, they don’t think Latin America, they don’t think even about South-East Asia outside of China and Japan.”

The video game industry expert emphasized that there was potential within those non-traditional markets and further suggested they look at the United Arab Emirates where states like Dubai have a large segment of its population interested in gaming.

Caribbean Export Pledges to Support Regional Game Industry

Also speaking during the presentation was Allyson Francis, Services Specialist of Caribbean Export. She said saw the game industry as important and believed that there are vast opportunities for regional developers and other players globally. She pledged Caribbean Export’s continued support and disclosed that the next session would focus on the business and marketing of games.

The Caribbean Export Development Agency has been instrumental in providing technical assistance, business development support and access to finance to professionals within the industry who are seeking to export their talent and services.

If there is one thing Jacqueline Cort-Thomas has learnt from her COVID-19 experience, it is that business people need to diversify.  The pandemic was certainly a wake-up call for the owner of the Villas at Sunset Lane, a 10-room boutique hotel located on the idyllic island of Antigua. 

Ms. Cort-Thomas, who was a beneficiary of the Caribbean Export Development Agency’s WE-Xport programme, an initiative which provides technical support to regional female-owned businesses, had leveraged the support of the programme to re-build the accommodation’s brand to attract group travelers and offer an alluring calendar of events. 

 Ms. Cort-Thomas also successfully rebranded the villa’s identity, launched an engaging website and transformed the property into a hot event location, with bookings for Jazz, Just Desserts Pop-Up, culinary re-treats, a film festival and tea parties, amongst others. 

As the benefits of the WE-Xport programme were coming to fruition, they quickly came to an abrupt halt when the novel coronavirus escalated globally. The travel and tourism industries were hit hard as countries announced plans to close their borders and governments issued calls for their citizens to return home. 

 We began to feel the effects of COVID-19 around March 23 when there was a possibility of Antigua & Barbuda closing their borders.  Guests who were already in the hotel hurriedly changed their flights to get home and all the bookings down to August were cancelled,” she recalled. 

The islands borders were officially closed on March 28 and a lockdown was quickly implemented. The hotelier was forced to lay off staff.  

It totally brought a halt to accommodation, the core business of Villas at Sunset Lane. It affected our entire calendar of events as all our special events which were planned and developed, some with sponsors in place, had to be cancelled.  Everything came crashing down, leaving the company with zero cashflow. It became evident that all my eggs were in one basket which had sprung a gaping hole. It taught me that I needed to diversify my product offerings,” she revealed

With downtime on her hands, Jacqueline drew on her culinary skills and training to offer a Home Cooking and Delivery Service. Although it gained traction initially, it wasn’t sustainable as momentum slowed down.

There was a demand from some quarters for precooked meals. Villas at Sunset Lane attempted to benefit from the demand but as the curfew started to relax, we found our new customers began to return to their familiar watering holes.  It was not worth the effort to continue the food service,” she explained.

Fortunately for Jacqueline, she and four other persons had previously invested in a business called TCG (Antigua) Ltd, which manufactures need-based” products such as citronella candles and insect repellent.

 She disclosed: Even though the hotels were all closed creating zero demand for Villas at Sunset Lane, households still needed these products so sales continued but on a reduced level.  The factory is now looking at producing hand sanitizers another need-based product for sale locally with the aim to expand regionally.”

 Ms. Cort-Thomas explained that TCG (Antigua) Ltd had the potential to scale up but it was in need of technical assistance. The predominantly female-owned company is hoping to benefit from the Caribbean Export Development Agency’s WE-Xport Programme, which is also designed to help regional business women start or increase exports of their products and services.

 So far, TCG (Antigua) Ltd. had begun the process of seeking authorization to enter several markets including Grenada, Guyana, St. Vincent and the Grenadines as well as Trinidad and Tobago.  There are plans to re-introduce the product line in St. Kitts and Nevis.

I view this move as part of me pivoting into a more sustainable business opportunity since in my opinion accommodation will struggle for the next two to three years to get back on a profitable footing,” she expressed.

 Ms. Cort-Thomas intends to create a symbiotic relationship between her two businesses, possibly bringing the industries of tourism and manufacturing a bit closer.

Villas at Sunset Lane is in the process of developing an e-commerce store which will sell key products made in the Caribbean. TCG (Antigua) Ltd is planning on improving its current line of fragrance candles with a focus on satisfying the Spa & Wellness market.  The fragrance candles will be part of gift packages sold via the online store,” she said.

Now that the country has reopened its borders to tourists, Jacqueline shared that the Villas at Sunset Lane received permission from the Antigua Tourism Board to operate again.   The board is responsible for examining hotels on the island to ensure they are compliance with COVID-19 protocols.  And although, overseas visitors haven’t returned to the accommodation as yet, Jacqueline indicated there was increased interest in staycations from locals.          

Nonetheless, despite the pandemic being emotionally and financially burdensome for Ms. Cort-Thomas, the businesswoman strongly believes that for her, COVID-19 was an important teaching moment.

I begin this week by acknowledging Caribbean Community (CARICOM) Day, which is customarily July 4 but, this year, will be commemorated on Monday, July 6. Also, on July 2, the Prime Minister of St Vincent and the Grenadines, Dr Ralph Gonsalves, will assume the chair of the CARICOM Conference of Heads of Government.

I read a recent news report about a Jamaican company, Spur Tree Spices, beginning to export its products to Costa Rica. Given the importance of this development, I decided to look this week at CARICOM’s trade with Latin American countries, focusing specifically on Mexico, Central and South America. CARICOM’s natural trading partners are in this hemisphere – Canada, USA, and the countries in Latin America and the Caribbean. The region’s principal trading partners, however, are USA; the European Union, including Britain; and Canada. Where are the Latin American countries? You will note that there is something in common between CARICOM and its principal trading partners, which is a historic relationship with Britain. In most of CARICOM, the official language is English, while in Latin America it is Spanish and Portuguese. In the 18th and 19th centuries, there was a relationship with some countries in Latin America, for example, Venezuela. British West Indians would later find work and residence in Ecuador, Colombia, Honduras, Costa Rica, Panama and Nicaragua, leaving a West Indian diaspora in most of these countries.

The 20 Latin American countries, from Mexico in the north to the tip of South America, present CARICOM countries with a market of 595 million people. Panama is about an hour’s flying time from Jamaica in the north; Trinidad and Tobago is less than an hour from Venezuela in the south; Belize is in Central America; and Guyana and Suriname are in South America. Yet, for some in CARICOM, language and culture are barriers to trade. Trade figures between CARICOM and these Latin American countries have been consistently low. In 2019, total CARICOM goods exports to the 20 countries is estimated at about US$2.2 billion and imports at about US$3 billion, giving Latin America a trade surplus. In trade in services, there have been some attempts to encourage tourism and investments from Latin America. There should be room to expand trade.

Latin America and the Caribbean, however, is not a well-integrated region. COPA is the only Latin American airline which flies into the CARICOM region (Guyana, Belize, Barbados, Trinidad and Tobago, and Jamaica). Caribbean Airlines goes to Caracas, Venezuela. Otherwise, the route to Latin America is through Miami, Florida.

Resident diplomatic representation is also weak. Several Latin American countries are represented in the CARICOM region, but few CARICOM countries are present in Latin America. The main countries having more than one CARICOM embassy were Brazil, Mexico, and Venezuela.

There have been efforts to promote regional integration through the Community of Latin American and Caribbean Countries and the Association of Caribbean States, headquartered in Trinidad and Tobago. It has also been an objective of the Inter-American Development Bank.

FREE-TRADE AGREEMENTS

In the 1990s and 2000s, there was CARICOM interest in promoting trade with Latin America. The CARICOM-Venezuela Trade Agreement was concluded in 1992, the CARICOM-Colombia trade agreement in 1994, and CARICOM-Costa Rica in 2004. There was quite a bit of activity around the Free Trade Area of the Americas negotiations, which were abandoned in 2005. There was also the PetroCaribe Agreement with Venezuela which, besides petroleum, had a trade component. These trade agreements have been underutilised. The relationship with Venezuela is now mired in political controversy.

Trinidad and Tobago has partial scope agreements with Panama, El Salvador and Guatemala; Guyana with Brazil; and Belize has agreements with all her neighbours.

There were proposals to negotiate trade agreements with Central America and MERCOSUR, neither of which came to fruition. There was also interest from Mexico and Chile. Promoting trade with Brazil has not borne fruit, as intended.

A POST-COVID SHIFT IN GLOBAL SUPPLY CHAINS

The question is now being posed; post COVID-19, should there be a relocation of global supply chains to regions, would Latin America and the Caribbean be able to benefit? I am more narrowly asking whether CARICOM countries could benefit? Would they be able to collaborate with Latin American countries in joint ventures?

CARICOM countries need to consider Latin America as a viable market for both goods and services. Language, culture, and market requirements should not be insurmountable barriers to trade. Spur Tree Spices is showing that there could be opportunities if CARICOM private sectors and governments are prepared to conduct further exploration, even with projected economic recession.

This article was originally published by the Jamaica Gleaner and submitted by Elizabeth Morgan, Specialist in International Trade Policy and International Politics.

This week, I am reflecting on the Caribbean’s trade with Europe, that is, the European Union (EU) and the United Kingdom (UK). As often said, economic growth and development in Caribbean countries depends on international trade, a subject which generates marginal interest in the public domain. It should be garnering more interest in this time of COVID-19, as a further downturn in both trade in goods and services (primarily tourism) is projected and the Caribbean needs to grasp opportunities to expand exports.

The EU, including the UK, has been the second-largest trading partner of the Caribbean ACP Forum (CARIFORUM) behind the United States. The trade, as you should know, has been governed since 2008 by the CARIFORUM-EU Economic Partnership Agreement (EPA) which gives preferential market access for trade in goods and services. With the UK leaving the EU, as of January 1, 2021, CARIFORUM-UK trade will be covered by the 2019 CARIFORUM-UK EPA continuing preferential market access.

STATE OF TRADE WITH EU AND UK

The CARIFORUM-EU EPA is now in its twelfth year and preparations for the second five-year review is in progress. This has also had delays due to COVID-19 restrictions. It is now expected that the actual review will be conducted at an EPA Ministerial Council meetings at year’s end.

CARIFORUM member states, such as Jamaica, used to have a trade surplus with the EU due to exports of alumina, petroleum products, rum, sugar, bananas and other products. Since 2008, the time of the financial crisis, coinciding with the provisional application of the EPA, that situation has reversed with the EU now having the surplus. CARIFORUM exports have declined. In 2019, CARIFORUM exported €4.60 billion in goods and imported €7.04 billion, giving the EU a surplus of €2.44 billion. Exports of traditional commodities, such as sugar and bananas into the UK market, declined and the value has not been replaced. The main products into the continental markets include alumina, petroleum products, and rum. Much will depend on the future state of alumina and petroleum production, and markets.

Trade in services with the EU is mainly based on tourism. There was a slight drop (1.4 per cent) in European visitors in 2019. There is some trade in financial services and in cultural industries (for example, musicians, fashion models, designers, etc). Implementing the EPA trade in services provisions has been a concern due to needs assessments, certification, visa requirements, language competence, among other things. The recent EU blacklisting of certain CARIFORUM countries, if not quickly resolved, could negatively impact trade and investment.

CARIFORUM-UK TRADE

Specifically on trade with the UK, there is, of course, a large Caribbean diaspora there and traditional links, including Commonwealth membership. For a number of CARIFORUM companies, the UK was also the gateway into continental Europe. From my calculations using statistics from the UK National Statistics Office, the value of CARIFORUM exports to the UK in 2019 was surprisingly 11 per cent of total exports to the EU and nine per cent of total EU imports, smaller than expected, indicating that the UK had ceased to be the principal market in the EU.

The value of CARIFORUM goods exports to the UK have been declining even before 2008. CARIFORUM goods exports to the UK in 2019 were valued at £405 million (€478 million) and imports were £532 million (€628 million), giving the UK a surplus of £127 million (€150 million). The main CARIFORUM exporters were the Dominican Republic, Trinidad and Tobago, Belize, Jamaica, and Guyana. Currently, the main Caribbean exporter of bananas to the UK are the Dominican Republic and Belize. This market is dominated by Latin America and Africa. For sugar, it seems that the UK is now importing more EU beet sugar and less ACP cane sugar. Price is a major issue. The main CARIFORUM sugar exporters are now the Dominican Republic, Belize, and Guyana.

On trade in services (tourism mainly), with Brexit, there was already concern in the Caribbean about the inflow of UK visitors due to the fluctuating value of the pound sterling. In 2019, UK visitors declined by 5.6 per cent. Now with COVID-19, it is most likely that the inflow of visitors will further decline. The main CARIFORUM services exporters to UK have been Jamaica, Barbados, Bahamas, St Lucia, Grenada, and Trinidad and Tobago.

Another concern has to be the status of the UK’s trade negotiations with the EU27, as it would be in CARIFORUM’s interest for the UK to have a free-trade agreement with the EU. These negotiations do not appear to be going well and it is possible that they could break down, leaving the UK without an agreement.

The postponed UK-Caribbean Forum is now to be rescheduled. This would provide a further opportunity to discuss trade and investment as the UK has already done with Africa.

PROMOTING TRADE

In the COVID-19 recovery strategy, hopefully, CARIFORUM governments, private-sector organisations and Caribbean Export will be focusing on how to regain and improve market share for new goods and services in both the EU and UK, assuming strong recovery in both.

I note that from the fourth CARIFORUM-EU Business Forum, held in September 2019, the Caribbean Chamber of Commerce in Europe has been established in Brussels with the aim of exploring business ventures in both the EU and UK. I am hoping they will be successful.

As of January 1, 2021, the Caribbean will begin a new era of trading with a delinked EU and UK in uncertain times.

This article was originally published by the Jamaica Gleaner and submitted by Elizabeth Morgan, Specialist in International Trade Policy and International Politics.

Often falsely portrayed as uniformly saccharine, rum is one of the most diverse spirits on the planet, and has been a major economic driver for Caribbean distilleries for centuries. Each Caribbean region produces its own distinct style of rum ranging from crisp, complex bottles and subtly sweet blends, to bold whiskey-like distillations. In Grenada, the more exotic rums tend embody a sweet fruity or flowery flavour. This especially holds true for the blends emanating from the Grenada Distillers Limited.

As one of the largest and best-known distilleries on the island, Grenada Distillers Limited has been in operation since 1937 as the Grenada Sugar Factory. The company offers a wide of range of 17 rum-based products, which are distributed under the Clarkes Court Rum brand. These include white and red rum, lemon and sorrel flavoured rums, liqueurs, and menthylated spirits.

“In an effort to expand the current product offering, the company has began to look at producing new rum flavours and textures”, shared Leroy Neckles, the Chairman of the Board. “One of our newer additions to the line is the Grenadian mojito, and we anticipate that this will do just as well as our other products.”

Leroy has been involved in the Grenadian sugar industry for some time, so naturally this became a motivating factor in establishing a business within this sector.

“My family had an interest in the sugar industry, as my father was one of the single-largest distributors of sugar cane to the then Grenada Sugar Factory. When the Government decided to divest itself from the factory, I saw it as an opportunity for me to get involved in that part of the industry and keep operations 100% Grenadian.”

Despite his experience, Leroy admits that there were still some challenges to overcome in transitioning from a factory to a full-fledged distillery.

“Financing was a major challenge because it was costly to make the improvements necessary when we started to operationalise the distillery. Also having the employees accept the changes that were being implemented was also a bit of a difficulty, essentially getting some of them to accept the modernisation of the factory.”

However, due to his focus and tenacity, Leroy never lost sight of his goal for the company; and today, Grenada Distillers supplies supermarkets and duty-free shops island-wide, with exports to the United States, United Kingdom, Canada, and the Caribbean. With a staff complement of 50 persons, the company hopes to expand their international reach to include more European countries.

“Right now our strategy for entering new markets is centred primarily on assessing the market needs in terms of the price, flavour and packaging of our products. Once we have gathered enough information, we establish the relevant contacts and begin negotiating to export.”

Much of the work that Grenada Distillers undertakes to access these markets is done independently, but the company also has a collaborative relationship with the West Indies Rum and Spirits Producers’ Association (WIRSPA), an association of national associations of rum producers in the Caribbean.

“Clarkes Court Rum is recognised as carrying the Authentic Caribbean Rum marque, which was developed as a symbol of authenticity, provenance and quality for rums within the WIRSPA family. They are one of the regional organisations that have played a role in our success.”

Another regional organisation that has made an impact on award-winning distillery is the Caribbean Export Development Agency. Grenada Distillers engaged with the Agency for the first time in 2011 when the company applied for and secured a Direct Assistance Grant for the procurement of laboratory equipment.

“With Caribbean Export’s help we were able to improve the quality and standard of the products offered. The company is also now capable of meeting and satisfying the import and food safety requirements for the countries to which we wish to export because of the assistance provided by the Agency.”

In addition to the Direct Assistance Grant, Grenada Distillers has participated in Break Point, the Brand Development and Packaging Workshop and proposals writing workshops. Leroy believes that the support offered by Caribbean Export has been tremendous and recognises the Agency as having played a significant role in the increased exports that the company has achieved.

In the long-term, Grenada Distillers wants to build on their current success by increasing their volume of exports and by continually improving the quality of products they offer.

“Within the next few months, the plan is to examine and revamp our branding and packaging, as well as introduce new flavoured rums to the product line, and value-added products such as syrups.”

The astute businessman thinks that regional firms need to pay special attention to the quality and presentation of their products if they want to be taken seriously as a competitive enterprise. Additionally, he believes that firms should seek to meet the necessary import and food safety requirements are critical especially when seeking to enter new markets.

“As Caribbean businesses looking to get into international markets, we need to familiarise ourselves with the requirements from customs to customer satisfaction. Attention to detail is also paramount as it can have a significant impact on not only your bottom line, but also your reputation”.

Leroy sees the Caribbean as having an untapped potential, not just in rum but also in other sectors. Adding that we have something so special and appealing culturally that no other country can come close to imitating or offering what is unique to us.

With a drive and determination that is to second to none, it is no surprise that Leroy and the Grenada Distillers team have been able to transform a piece of Grenadian history into a reputable and prosperous spirited brand with an export focus.

This article was originally published in Primed for Success Vol. 3.

With its conclusion delayed from 2019, the post-Cotonou negotiations between the African, Caribbean and Pacific (ACP) Group of States and the European Union (EU) was scheduled to conclude this March and reviewed at a meeting of the ACP Council. When the COVID-19 pandemic was declared, the restrictions in Belgium and elsewhere further set back the agenda for concluding these negotiations.

In April, with the entry into force of the revised Georgetown Agreement, the ACP became the Organization of African, Caribbean and Pacific States (OACPS). Thus, the agreement will now be between the member states of OACPS and the EU. Through virtual means, the ACP ambassadors and the EU technical team in Brussels resumed the negotiations.

Work on the two parts of the agreement, the foundation and the regional protocols have gathered pace with the aim of concluding negotiations as quickly as possible. It appears that, in the foundation negotiations, there were sticking points on sensitive political issues. ACP countries also want to see an agreement with a clear link between the foundation and regional protocols, as the regional protocols should not be seen as separate instruments.

Further on the protocols, as expected, the heading, mobility and migration is proving a difficult issue between the EU and African countries. It is also a concern for the Caribbean, as the EU seems reluctant to address this issue in any detail. This heading addresses travelling and working in the EU and, for the Caribbean Forum (CARIFORUM) countries, this is linked to their Economic Partnership Agreement (EPA).

Development cooperation is yet to be treated in these negotiations. You may recall that the EU integrated the European Development Fund (EDF), from which the ACP was financed, into its proposed new Multiannual Financial Framework (MFF) (its budget) for the six-year cycle, 2021-2027. The ACP will now be funded from its Neighbourhood, Development and International Cooperation Instrument. The MFF 2021-2027 is still to be approved by the EU Council. In addition, the EU is now looking at an economic recovery programme for members affected by COVID-19. Recall, too, that it had a funding gap created by Brexit. It would not be surprising if EU funding to the OACPS is reduced.

A PRIORITY

During the week of June 8, the OACPS Central Negotiating Group (CNG) met to consider the draft texts and review the status of the negotiations. CARIFORUM is represented in this Ministerial Group by Guyana and Jamaica. The chair is Minister Robert Dussey of Togo. This meeting was followed by a meeting on June 11-12 of the lead negotiators, the OACPS’s Minister Dussey and the EU’s International Partnerships Commissioner Jutta Urpilainen. They agreed that work will be expedited with the aim of concluding negotiations by July. I gather that the lead negotiators plan to meet again before the end of this month.

CARIFORUM member states would want to review the draft text before the negotiations are formally concluded. Suriname, which recently had general elections, should assume the chair of CARIFORUM on July 1. An early meeting of the OACPS Council would also be necessary.

Both lead negotiators, in their press release, stated that the agreement remained a priority. They assessed the negotiations as progressing well, in a cordial spirit, in spite of COVID-19, and they were moving closer to conclusion. Dussey stated that the new agreement would take into account the unprecedented challenges now confronting the countries due to COVID-19.

The OACPS convened a summit on June 3 to specifically address the economic fallout from COVID-19. The Heads of Government called for modalities for prevention, preparedness, and recovery measures for pandemics to be included in the post-Cotonou agreement. CARIFORUM Heads used to summit to express their concern that the EU had unilaterally placed four members on its List of High Risk Third Countries on Anti-Money Laundering and Terrorist Financing. They appealed to them to place a moratorium on implementation to facilitate dialogue with the commission.

So, the negotiations to cement this ‘partnership of equals’ is now accelerating to reach the finish line before August.

This article was originally published by the Jamaica Gleaner and submitted by Elizabeth Morgan, Specialist in International Trade Policy and International Politics.

The Covid-19 pandemic has significantly changed the world as we know it. Job losses, declining revenue and closed market opportunities have become the reality of firms around the world. Caribbean companies, not exempted, now have a new storm to weather. One silver lining, however, is that the global pandemic has created new business opportunities. With changing customer behaviours and needs, firms must now examine new market trends to strategically re-position themselves to meet them.

Hygiene and Sanitization Products

With heightened consumer demand for clean and safe spaces, opportunities will continue to abound in the hygiene/sanitization sector. It is no surprise that manufacturers of cleaning products have witnessed a spike in sales. The CEO of Clorox has reported a 500% increase[1] in demand since the start of the year, and we recently heard how Trinidad and Tobago based manufacturer Chem Clean has also experienced an upsurge as households and businesses settle into new disinfecting routines.

Information Technology Services

The CEO of IT giant, Box, recently stated in an interview that the amount of business transformation from a technology standpoint over the next few months will be completely unparalleled to any other time in history.[2] Could Amazon’s planned workforce expansion (100,000 new hires) during this period indicate that this trend is likely to continue?[3]  Despite the persistent challenges that have slowed down the development of e-commerce in the Caribbean, the expansion of WiPay outside of Trinidad and Tobago during Covid-19 shows that the tide may be turning. 

Immunity Boosting Foods, Beverages and Nutraceuticals

Similarly, the nutraceuticals industry which is projected to experience growth to approximately $317.3 billion USD by 2024 also offers opportunities.[5] The region has successfully demonstrated its competence to excel in this sector as evidenced through experts like entrepreneur Dr. Henry Lowe (Flavocure Biotech) who has several US patents based on his research into high value health solutions using indigenous plants.

Film & Music

For firms in the creative industries, global trends are in their favour. Although faced with significant revenue declines due to cancellation of live performances and screenings, the increased interest in online consumption for both music and film is a positive note-worthy trend. Globally, audio-visual streaming increased by 14.5% during early March when several countries began their lock downs.[6] Netflix has seen their subscription rate more than double – moving from its forecast of 7 million new paid subscribers for Q1 to 15.8 million. [7]Membership on Twitch has also grown by 31% as has digital radio services, e.g. BBC’s radio streaming increased by 18%. [8]With more persons confined to their homes and the mental health benefits that music and film brings, Caribbean producers can use this time to share their content, expand their following and connect with diverse audiences on interactive platforms. Recently the first reggae Verzuz battle between Beenie Man and Bounty Killer on Instagram Live recorded close to 500,000 live viewers and a suite of A-list celebrities tuned in to watch. Similarly, a Los Angeles based DJ, @dnice hosted a DJ party in his kitchen with over 100,000 live viewers including Ellen Degeneres, Oprah, and Michelle Obama. This event increased his following from 200,000 to its current 1.8 million followers.[9]

How to find the opportunities

The opportunities available will be different depending on your own situation.  Here are three strategies outlined by the MIT Sloan Management Review to help you identify yours:

1. Same Product Different Channel (Online): You may want to digitise your product or deliver your service online just like the example of DJ @dnice or the reggae challenge shared above. Nike has begun to engage customers with online workouts resulting in a 35% upshot in sales[10] while companies in Napa Valley are offering online taste testing lessons. What would applying this strategy look like for your company? If regional agro-processors offered an online cooking experience using their products, they could drive sales during or after the online event. The opportunities to offer virtual services or events to customers are endless and just takes a little imagination.

2. Same Infrastructure Different Product: While the pandemic has brought some businesses (E.g. hotels and guest houses) to a standstill, others have experienced an increase in demand. Can your company re-purpose your existing infrastructure to produce or sell high demand products and services? In Barbados, some hardware stores have begun to sell groceries. With many parents balancing remote work and home-schooling, some guest houses in Jamaica have offered their rooms to those who want a few hours of uninterrupted work time. So how can you offer a new product or service to customers using your existing arrangement?

3. Same Product Different Infrastructure: Some firms may find themselves with the problem of struggling to meet the demand for their products and services and need to increase production or distribution capacity. Globally, firms have sought to bridge the gap through creative partnerships. To meet the spike in online shopping demand, Amazon has partnered with Lyft to temporarily hire workers as the demand for ride share has plummeted. With increased unemployment, firms now have a larger labour pool to train and deploy even if temporarily. During this period of uncertainty, adopt a proactive approach. Assess market changes to adjust your products, services, and strategies to meet current and future customer needs. What will you need to do differently to take advantage of some of the emerging opportunities and how can you apply the strategies shared to mitigate the effects of Covid-19 on your business?

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[1] https://finance.yahoo.com/news/clorox-has-seen-500-increases-in-demand-during-the-covid-19-pandemic-ceo-132530052.html

[2] https://www.uschamber.com/co/start/strategy/pandemic-business-trends-that-are-here-to-stay

[3] https://www.fool.com/investing/2020/04/01/amazon-partners-with-lyft-to-deliver-packages-and.aspx

[4] https://www.forbes.com/sites/daphneewingchow/2019/05/14/there-is-a-growing-market-for-nutraceuticals-in-integrated-cancer-treatment-in-the-caribbean/#6eb7c4c3204b

[5] https://www.globenewswire.com/news-release/2018/06/25/1528968/0/en/Global-Nutraceuticals-Market-Will-Reach-USD-317-3-Billion-by-2024-Zion-Market-Research.html

[6] https://www.twobirds.com/en/news/articles/2020/global/covid-19-the-music-shuffle

[7] https://www.theverge.com/2020/4/21/21229587/netflix-earnings-coronavirus-pandemic-streaming-entertainment

[8] https://www.twobirds.com/en/news/articles/2020/global/covid-19-the-music-shuffle

[9] http://www.jamaicaobserver.com/business-report/industries-that-will-boom-provide-the-most-opportunities-post-covid–19_191136?profile=1056

[10] https://sloanreview.mit.edu/article/three-proactive-response-strategies-to-covid-19-business-challenges/