Mark McKenzie, former Managing Director, Desnoes & Geddes Ltd.(RED STRIPE)

Mark McKenzie and Alan Barnes share the #5 ranking on “The List” because they shared CEO duties at Desnoes & Geddes Ltd for 2009. It was a year in which the company, best known as Red Stripe, sold less beer and reaped higher profits thanks largely to a strong export market and a weaker Jamaican dollar.

McKenzie was ousted as managing director in July after five years as the region’s top brew master. McKenzie might have fallen victim to his early success. He generated record annual profits, which peaked at $2.3 billion in 2005, but since then net earnings declined annually until they bottomed out at $1 billion – an eight-year low in 2008, the Gleaner reported at the time of his firing.

Despite the decline in earnings, McKenzie, a veteran of such corporate giants as Coca Cola and Proctor & Gamble, managed to grow Red Stripe revenues annually. Revenues for Red Stripe reached $12.5 billion in 2008, while the company’s net worth grew each year – except in 2008 when stockholders equity declined from $6.5 billion to $6.3 billion. A year later, he was pushed out as the company tried to freshen up its leadership ranks.

“After five challenging years with much that we can be proud of, the board has decided that it is again time to refresh the leadership of this iconic Jamaican business,” said Chairman of the Board Richard Byles in a company-issued statement. By year end, five board members, including McKenzie, had been replaced.

Alan Barnes Managing Director, Desnoes & Geddes Ltd.(RED STRIPE)

On July 1, 2009 Barnes took control of Diageo’s interests in the Northern Latin America and Caribbean zone. Coincidentally, in a major restructuring months before the leadership shakeup, Jamaica had added to the NorthLAC Zone.

Before assuming the leadership post in Jamaica, Barnes was based in Seychelles, where as general manager of Diageo’s Indian Ocean operation, he also oversaw the business in Reunion, Mauritius and Madagascar.

After Barnes was on the job in Jamaica for less than six months, the company reported $1.5 billion in after tax profits, up about 49 percent from the previous year.

How did Barnes engineer the turn around?

“We committed to pursuing strategies that would beat the competition, grow the beer and spirits markets, and increase our exports profitably,” Barnes said in the company’s 2009 year end financial report. “Despite the global downturn that has impacted heavily on Jamaica, and increased competition from both within the alcohol beverage segment and externally, I am proud of what we delivered. This success was not achieved without significant work in reviewing and transforming all areas of our business.”

The increased revenue can be credited to strong export volume growth and price increases, which helped to make up for a decline in local sales. The company saw double-digit increases in exports to such key overseas markets as the USA, Canada and Europe.  The devaluation of the Jamaican Dollar in respect to the United States Dollar (USD) also worked in the company’s favour, since exports are invoiced in green backs, the financial report stated.

Trading profit was $2billion, which represented a 30 per cent year-on-year increase that was primarily driven by the growth in gross profit and the reduction in marketing costs. The company paid dividends of $983 million during the year, which translated to 35 cents per stock unit.

The strong export sales helped make up for the 10 percent decline in sales from a year before. That decline, especially in the domestic market, was blamed on the lackluster economy, increased competition and a Special Consumption Tax hike, which dampened local demand for the company’s brewed products, according to the company’s financial report.

Despite the challenges, under Barnes’ leadership, Red Stripe promises a combativeness that is likely to see him make an encore appearance on “The List” for the coming year.

“We will win everywhere that we choose to compete and fight, ensuring our brands have maximum distribution, our activities are brilliantly executed and our relationships with our customers are world class,” he vowed.