As the culmination of an initiative that began in Cuba almost a quarter century ago, led by Spanish company Hotelsa Alimentación, in 2015 Profood Service S.A. found a home at the Mariel Special Development Zone (ZEDM), where it hopes to have its facilities up and running as soon as possible.
Toni Vicens, Profood Service S.A administrator, noted that on being authorized to establish itself at this logistical hub, located to the west of Havana, the company moves from being a Spanish subsidiary recognized by the Chamber of Commerce of the Republic of Cuba, to a domestic business with fully foreign capital.
Included among the first companies to be based at Mariel, this Caribbean subsidiary of Hotelsa Alimentación envisions major challenges ahead, as part of its participation in this huge project, which is key for Cuba, and will require constant effort and dedication, Vicens added.
Profood Service S.A has a significant strategic advantage over other businesses. According to its administrator, experience in other countries demonstrates that those companies that establish themselves first in an area enjoy a number of competitive advantages.
The core business activity of the firm will be the manufacture of juices, cocktails, cocktail mixers and powdered drinks for beverage dispensers, which will be assembled in Cuba and installed in hotel buffets, workplace cafeterias, hospitals, cruise ships, companies and other institutions.
To a lesser extent, according to Vicens, some of Profood Service S.A’s products will go to retail stores.
Among the many benefits of the ZEDM for investors, he highlighted the favorable installation and services (electricity, networks, water, etc.) costs and competitive land prices, which are below the average for the international market.
The European expert also praised the excellent support provided by the ZEDM “Ventanilla Única” system (an all-in-one documentation processing office) and highlighted the logistical importance of the proximity of the Port and Container Terminal.
The administrator told Granma International that the fiscal benefits offered by the ZEDM are a huge incentive for any company, as well as the skilled Cuban workforce and the motivating staff remuneration system, suited to Profood Service S.A.’s production process.
Another attraction lies in the possibility of exporting from the ZEDM itself, the ease of importing necessary products and a clear legal framework regulating all activity which provides peace of mind to foreign investors, he added.
The company has already reached agreements on services and the installation of a modern factory with innovative production and packaging lines, while the building permit to commence construction works before the end of the first quarter of 2016 is being processed.
Vicens noted that the initial market for the company will be the domestic market, and that the productive capacity at Mariel will be 6 million units per year, which could be quickly doubled in a second phase.
In this regard, he stated that exports to the rest of the Caribbean will begin from the second year of operations, without losing sight of the U.S. market. “Given a withdrawal of the U.S. economic, commercial and financial blockade against Cuba, Profood Service S.A products would compete in the southern United States.”
There is widespread interest in getting products to clients the firm has contracts with in other countries, which, given the new factory, will be available in Cuba. Meanwhile, the company has a huge selection of food and beverages for the retail sector.
Considering the excellent prospects for tourism in Cuba, successful marketing in the hospitality sector is expected. “An increase in tourists to the island would provide a definitive boost for Profood Service S.A.’s business and the long-term consolidation of the investment,” the administrator concluded.
