ECONOMY & TRADE FOCUS
Acquires Control of and
Supermarkets
Michael Chastanet and Partners Sell Their Shares in Gablewoods Supermarkets The Trinidad-based conglomerate, Neal and Massy, has bought an additional 67.3 per cent of the shares owned by Mr Michael Chastanet and his partners in Gablewoods Supermarkets which they now own fully and by extension also now own 60 per cent equity and controlling shares in Consolidated Foods Limited (CFL), operators of the Super J IGA Supermarkets in St Lucia and St Vincent, Mega J Wholesale and Ti J Community Franchise in St Lucia and Sav-a-Lot in St Vincent. Former CFL Chairman, Michael Chastanet, in a statement confirmed the buyout, but gave no details as to the amount paid for the majority shares. Chastanet said after 20 years in the supermarket industry, he along with his immediate partners Andre Chastanet and Oswald Augustin, have made a “strategic decision to transition the ownership of Gablewoods Supermarket to the regional conglomerate, the Neal & Massy Group, who has been a shareholder of Gablewoods Supermarket since 2002”. As of January 1, 2014, Neal & Massy is the sole shareholder of Gablewoods Supermarket and by extension, majority shareholder of Consolidated Foods Limited (CFL), which is the operating entity for CFL’s retail stores, Chastanet said. Forty percent of CFL remains in local hands while 60 percent will be held by Neal & Massy. Gablewoods Supermarket, JQ Charles and the over 200 staff members are now the sole owners of CFL. “Neal& Massy do have controlling interest but 40 percent is a big shareholding. So, from that aspect there, it’s not a matter of going all into the hands of a Trinidadian per se, you know. They have to work with the partners. The 1500 staff are very meaningful to them. They have to work with those people,” he said. Chastanet is confident in Neal & Massy, which he describes as “an established regional company” which controls and operates the Hi-Lo chain of supermarkets in Trinidad as well as the Super Centre Supermarkets in Barbados. “We have no doubt that Neal & Massy will provide their proven BusinessFocus Jan / Feb
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expertise to a company like CFL, which has become a household name and more importantly, a company built on local input, since its inception. As a locally grown entity, we recognize the need to now compete on a global scale and remain competitive and viable. “We have faith that with the leadership and proven track record of Neal & Massy, in the retail business, the supermarkets will attain world class standards and service while creating even more value and opportunities for all of its stakeholders including our employees.” He added: “After 60 years as a Saint Lucian businessman, I am confident that under this new ownership, our valued operations will continue to enjoy the success and stability which has benefited all employees, local shareholders, suppliers and stakeholders. To the entire staff of CFL and all St. Lucians who have devoutly supported the company, we wish to say thanks in many ways and above all on behalf of the CFL staff and its Directors past and present, we extend best wishes, health, happiness, and prosperity to all St. Lucians for 2014 and beyond.” Regarding the reason behind his decision to sell his shares, Chastanet advised: “Because of where I am at this time of my life, I felt that CFL needed another great push, like it got 20 years ago, to take it to another level. And it was those factors which I considered, which i wouldn’t say made me, but persuaded me to move in that direction. No decision is ever perfect in life but in my humble opinion I feel that what Neal & Massy can bring to the table today would be very good.” Neal and Massy have further positioned their presence locally in St Lucia with the recent opening of Marketing & Distribution ( Trading as M & D ) – A Division of Trading and Distribution Ltd – a wholly owned Neal & Massy Subsidiary specializing in the Distribution industry. The company has already acquired the agency for major brands such as Nestle Products and Valrico Foods.