August 18, 2020

Salada Foods Jamaica Limited (SALF) has advised that the Company received a letter from the Jamaica Agricultural Commodities Regulatory Authority (JACRA) directing the Company, pursuant to the Jamaica Agricultural Commodities Regulatory Authority Regulations 2018 Section 19, to now include 30% local coffee content in the formulation of its instant coffee powder with effect on September 1, 2020. Presently, Salada uses 10% local coffee. SALF has advised that JACRA’s edict to change the instant coffee formula will be detrimental to the Company’s cost of sales. It will also materially change the taste profile of its Mountain Peak Coffee brand which currently enjoys over 50% market share of the instant coffee sector and the Company is unsure of how receptive consumers will be to this. SALF has requested a meeting with the Minister of MICAF and JACRA to discuss their directive and the impact it will have on SALF’s operations.

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