'System' Moves to block expansion of Street Vybz Rum - Kartel says
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Written by Sean Miller/Business Writer
Wednesday, 16 December 2009
Businessman Corey Todd and entertainer Adidja Palmer a.k.a Vybz Kartel, the owners of Unlimited Daggering, the company which is responsible for the marketing and production of Street Vybz Rum, are charging that there are business interests which are blocking the growth of their company and undermining their ability to compete in the marketplace and generate revenue to employ over 20 workers.
"We pay our taxes, we go through the right avenues to get our product, we have secured our licence to manufacture the rum through the proper government channels, so what is the problem," Vybz Kartel said.
"We employ 15 persons, generate millions in tax revenue to the government, and we have plans to expand our business and employ more persons in the future and these people are trying to block Street Vybz Rum. Why is the government allowing these sort of unfair business practices which are stifling a small growing company?" the deejay asked. Jamaica's unemployment rate is 10.3 per cent according to statistics released by STATIN in October 2008.
Corey Todd believes that the problems of the company stem from their decision to expand their business, establish their own factory and purchase stock directly from National Rums of Jamaica (NRJ). This decision to become rulers of their own destiny could have a negative impact on the financial bottomline of their former manufacturers, Port Royal Rums, who would stand to lose substantial revenues from the new-found independence of Street Vybz Rum.
"The brand has been doing very well on the market but has been having problems with our manufacturers, Port Royal Rums. Port Royal rums has refused to negotiate considering when the brand started with a 100 cases a month to now over 800 cases a month. With that kind of growth you would expect a price decrease but instead we received a price increase. The Port Royal Company is also being audited for not paying the proper taxes. Port Royal wasnt producing our product efficiently or effectively even though we were the main source of income to their company," Corey Todd said.
Corey Todd believes that an 'old boys network' is masterminding the move to keep Street Vybz Rum from becoming a serious player in the market.
"Geoffrey Messado, the owner of Port Royal rum felt that we couldn't bottle the rum ourselves so whatever they said was law. So after numerous of failed negotiations we decided to open our own factory. I then approached National Rums of Jamaica, a company that the govt has a percentage ownership. I asked them what requirements would be needed to purchase rum from them, I was told a spirit compound license, a bond for the excise office and other requirements. We filled all criteria through the proper channels, set up our factory for production which cost us over 5 million dollars, then approached National rums of Jamaica with an order. I was informed my order was being processed and would get the rum in a few days," Todd explained.
Then the power play to block Street Vybz Rum began.
"Geoffrey Messado found out we were purchasing rum, so he contacted his childhood friend Evon Brown, the managing director of National Rums of Jamaica and requested he not sell us the product. After being told on Monday the 14 of December I could pay and pick up the rum tomorrow being Tuesday the 15th, when I called the company to make specific agreements I realized I was being given the run around. I decided to go to their office where I was told that my company wasn't approved by the directors because they don't know anything about the company. I stated I was purchasing the rum cash and already possessed all the requirements. Their argument then changed to well we don't have the rum and we are closed for holidays, clearly this isnt true."
Todd claims that there are interests which are attempting to strongarm him into buying from a company that sells at an inflated price and moreover, this is an anti-competitive practice which could be met with legal sanctions if properly investigated.
"Geoffrey Messado then disclosed to me that himself and Evon Brown are close friends and it impossible for me to get rum for National Rums of Jamaica, (which is a government owned company). This is merely a ploy to hinder my company's progress by a 'bad mind uptown man', after he already made over $15 million in less than a year due to our product. Geoffrey messado is now hoping we can negotiate prices," Todd said, quite clearly upset.
National Rums of Jamaica Limited (NRJ) is a limited liability company established in 1980, however, contrary to Mr. Todd's claim, the NRJ is not fully government owned. Four years ago, that was the case, but since then, Demerara Distillery Limited of Guyana and Goddard Enterprises Limited of Barbados have each acquired a one-third stake. Each of the partners has two directors on the rum company's board.
"My company has already hired over 20 employees, we have orders amounting in over 400 hundred cases waiting to be filled. I learnt today by Geoffrey Messado that the only way these orders are going to be filled with rum from NRJ is through his company Port Royal rums. My directive to Geoffrey Messado was until I receive my rum I wont be paying them the amount I have outstanding which Duncan Messado is already ludicrously inflating. This situation caused by Mr. Messado is not only stopping my companys business but special consumption tax of millions of dollars monthly to be paid to the government and denying 20 individuals of their only source of income. We demand that the board take us seriously," he said.
Todd said the situation was patently unfair and sent the wrong message about the presumption of a free, efficient and fair marketplace.
"The government should do something to stop these guys from creating a monopolistic situation by actively prohibiting competitors from entering the field," Todd concluded.