Last year’s number 4 ranked CEO is back with a bang, climbing his way to the top spot on this year’s list.  Jeffrey Hall was appointed Group Managing Director of Jamaica Producers Group in July 2007 after joining the Board in 2004 and joining the Group in 2002. Hall serves on the Board’s Audit, Compensation and Executive Committees.  He is also a Director of the Scotia Group Jamaica Limited, Kingston Wharves Limited, Blue Power Group Limited, JAMPRO and Agro-Invest Corporation.  Mr. Hall received his Bachelor of Arts degree (summa cum laude) in Economics from Washington University, his Masters degree in Public Policy from Harvard University and his Juris Doctorate from Harvard Law School. He has practiced law as a member of the New York Bar.

The Jamaica Producers Group is a Jamaican-owned and operated company which came into being on April 1, 1929, as a direct descendant of the Jamaica Producers Association formed in 1925, under which separate co-operatives- one for the marketing of each agricultural product – were set up. It had an initial membership of 6,145.

It has since grown from strength to strength, diversifying into shipping, and moving up the value chain to provide processed foods like smoothies, banana chips and juices.

For the year 2011, JP generated total revenues of $6.18 billion, an increase of 5% relative to 2010. With profits attributable to shareholders in 2011 of $963 million, JP experienced a 208% increase over 2010.  The single largest contributor to this increase was a gain on the disposal of long-term investments.

What has placed this company on the fast track to unprecedented productivity and a number one CEO placing is a number of strategic initiative implemented by Hall and his team during the year 2011.

In November 2011, JP, through its Dutch subsidiary, A.L. Hoogesteger Fresh Specialist B.V. (Hoogesteger), commissioned a new juice processing plant aimed at extending the shelf-life of freshly squeezed juice. This juice processing facility is the first of its kind in the world and is designed to use electrical impulses as an alternative to traditional heat or pressure treatments (such as pasteurisation) to destroy the bacteria that may develop in fresh juice. The difference between the traditional treatments and JP’s new Fresh Micro Pulse technology is that their process does not lead to the destruction of the natural cells found in fresh fruit juice and results in fresh juice with a taste comparable to untreated juice and an extended shelf-life of approximately 21 days.

The introduction of this technology is unquestionably a long-term investment for JP, but it is expected to begin to make a positive contribution to profits in its second year of operation. The capital investment associated with this project totalled $300 million and included the purchase of plant and equipment as well as the acquisition of a 32,000 square foot building to allow for the general expansion of their operations. JP expects to achieve its targeted return on investment by leveraging the extended shelf-life of its juices to expand its sales outside of the Netherlands. During 2011 JP successfully introduced the new product in Germany and Belgium and expects to achieve the required throughput levels by the end of 2012.

In October 2011 a joint venture owned by JP and Pan-Jamaican Investment Trust Limited acquired the assets and certain liabilities of Mavis Bank Coffee Factory Limited (Mavis Bank). Mavis Bank is the largest processor of Jamaican Blue Mountain Coffee. The company exports its green bean products to Asia, the USA and Europe.

Its roasted coffee products are also sold internationally under the Jablum brand as well as in Jamaica where we have a strong presence in the travel retail channel. JP’s direct investment in connection with its 50% share of the Mavis Bank acquisition will amount to $122 million, which includes $56 million incurred prior to the end of 2011. Prior to the acquisition, the company had been loss-making. Although Mavis Bank was able to achieve an immediate operational turnaround since the acquisition, in the short-term it will require the ongoing re-investment of a considerable share of its profits if it is to achieve the growth potential as well as quality and efficiency standards that we feel are appropriate for this iconic Jamaican business.

The Group’s initial capital investment program for the business will see the commissioning of a state-of-the-art waste-water treatment facility at a cost of $59 millon. We feel that this facility sets a bold new environmental standard for the Jamaican coffee industry. Future development plans will centre on factory efficiency, product and market development, and extension services to improve their supply base and generate productivity gains for local coffee farmers.

Mavis Bank is treated as a joint venture company in JP’s consolidated accounts and accounted for under the equity method.

The company also make certain critical moves in the area of land management and logistics. In March 2011 their subsidiary, Four Rivers Mining Company Limited (Four Rivers), commissioned its aggregate extraction and processing plant. This entity is located at their Agualta Vale farm in St. Mary. The business has already developed a solid base of customers along the North Coast and has become a leader in its key product categories. The business experienced start-up losses in the first half of 2011 but generated a positive contribution to the Group’s results in the second half of the year. The total investment by JP in connection with the start-up of this project was $90 million.

Businessuite magazine top ceo for 2012 Jeffrey Hall (left), chief executive officer of Jamaica Producers Group (JP), and Businessuite magazine top ceo for 2010 Stewart Stephenson, executive chairman and chief executive officer of Kingston Wharves Limited (KWL).

Subsequent to the close of 2011, Kingston Wharves Limited (KW), a company listed on the Jamaica Stock Exchange, accepted an offer by JP to subscribe for 357,550,000 ordinary shares of KW at a price of $5.00 per share. The total amount of the investment is $1.79 billion and will result in JP holding 26% of the issued shares of KW (after taking into account its shareholding prior to the transaction). This investment is a long-term strategic investment for JP, and follows their plan to leverage their asset base and management knowledge to diversify their business and improve overall shareholder returns.

KW is recognized as a leading private multi-purpose port terminal operator in the Caribbean. The company operates a comprehensive range of terminal equipment across 260,000 square metres of open storage space, 24,000 square metres of covered warehousing and cold storage, and 53,000 square metres of off-dock storage for motor vehicles. The KW terminal has a 1,655 metre continuous quay that provides nine deep-water berths for roll-on-roll-off, lift-on-lift-off, general break bulk, containerized cargo and bulk cargo, vessels.

The KW port facility was, however, built in the mid-1960s and was designed primarily to process break bulk and non-containerized cargo. As a consequence, the near 50-year old facility requires some rehabilitation of its infrastructure and a redesign of key aspects of its operations to effectively compete in a market for logistics services that is increasingly dominated by containerized cargo.

At the same time as it seeks to rehabilitate its core infrastructure, KW will focus on growing revenues by intensifying the development of trans-shipment operations, developing strategic synergies with trans-Pacific lines and increasing its operating efficiency. The ability to process increased numbers of vessels and larger vessels will enable KW to grasp the opportunity presented by the expansion of the Panama Canal and thus grow cargo volumes, expand into new services and participate in the creation of an international logistics and distribution hub in Kingston.

In order to re-position the port for growth and improved returns as a trans-shipment terminal, KW has developed a five-year development plan that will benefit from the proceeds of JP’s investment. The key elements of the project include the refurbishment of berths, the relocation of the existing warehouses and the procurement of additional equipment, including cranes, stackers, trucks and other haulage equipment to process and move an increased volume of containers through the port.

Nowhere is a company’s success more directly attributable to the strategic moves of its leadership than the Jamaica Producers Group Ltd.  More than enough reason to place CEO Jeffery Hall at the very top of this year’s CEO listing. Asked in a local newspaper about what defines him as a manager, Hall said: “I guess … other people will say that I have the ability to do what is required to develop new strategy, to be strategic, that is, to identify the strategy at the macro level taking into account the effect at the local level and see to the execution.” BM