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BBC presents the facts

September 14, 2006

IN THE WEDNESDAY SEPTEMBER 13TH edition of the Daily Nation,
Chefette Restaurants published a full page paid advertisement in which
they sought to present to the public an explanation of their decision to
switch soft drink supplier. Embedded in the article is the open assertion
by Mr. Haloute that their decision “…was dictated by an astronomical
rate increase that was proposed by Barbados Bottling Co. Ltd. (BBC)”.
Barbados Bottling Company is not in the habit of discussing its customer
relationships, past or present, in public; however the content of Chefette’s
paid advertisement mandates that we protect the integrity and the support
we receive from staff, loyal customers and consumers.


The facts of the matter are as follows:
1. BBC entered into a 5 year contract with Chefette in 2001 for the
supply of soft drinks to the chain, the prices were fixed for the five
year term of the contract.


2. Early this year negotiations began with Chefette for a successor
contract and a proposal was submitted to them for consideration.
The contract was for a further 5 year period with pricing fixed in
the first 2 years and a review required in year 3. Chefette countered
that they were desirous of a 7 year contract with fixed prices for
the entire term. BBC could not accommodate that request given the
volatile nature of prices on sugar, concentrates & energy – all key
inputs into the manufacture of the syrups.


3. The increase proposed by BBC amounted to the equivalent of
6.8 cents per 16oz serving. This would represent the only
increase in pricing to Chefette for the last 5 years.


4. Chefette subsequently informed BBC of their decision to switch
with effect from 31st July 2006.

5. In mid-July Chefette approached BBC and requested that BBC
continue to supply them with product beyond the agreed
termination date as their new supplier was now unable to meet the
changeover deadline. BBC agreed to their request and continued to
supply them for a further two weeks AT THE 2001 PRICES.


6. BBC has, over the past weeks since the changeover been inundated
with calls from consumers and the media regarding the change and
has always indicated that decisions such as this are a consequence
of the competitive world in which we live.