Wisynco Looks to Extend Distribution after Coca-Cola

Julian Richardson

The Wisynco Group has set its sights on extending its distribution deal under the Glaceau line of products after beverage maker Coca-Cola, whose products Wisynco is exclusively licensed to distribute on the local market, announced last week that it will buy Glaceau for US$4.1 billion, its largest acquisition ever.

Wisynco is already the local distributor of Glaceau's flagship product, Vitamin Water, but William Mahfood, head of the White Marl, St Catherine-based manufacturer and distributor of a range of drinks and household products, is expecting that Coca-Cola's imminent acquisition will open the door to the company's other products, which include Smart Water, Vitamin Energy, and Fruit Water.

"We had started distributing for Glaceau, Vitamin Water products in Jamaica just about a year ago, and they have been quite successful over the last year; so it's a happy coincidence that it's another product within our portfolio that Coca-Cola just bought," Mahfood told the Business Observer.

"I don't expect any changes in the near future other than possibly we would expand the line under Glaceau. They have a product called Fruit Water, which is fruit flavoured water and extremely nice; I expect that probably we would introduce this in the near future," added Mahfood.

The US$4.1 billion that Coca-Cola will pay for Glaceau is nearly double its estimated value less than a year ago. Coca-Cola was attracted to the Whitestone, New York-based company because of its leading status in the enhanced-water and energy drink sectors, which Coca-Cola is hoping will make up a large portion of the beverage industry's growth in North America through 2010.

The boards of both companies have approved the transaction, which is expected to be finalised in the summer. Glaceau would operate as a separate entity within Coca-Cola's North American segment.

Wisynco, last August, acquired the bottling and distribution licence for Coca-Cola in Jamaica. At the time, Mahfood said his firm, buoyed by a $1-billion, 260,000 square-foot logistic warehouse and distribution centre expansion project that is being completed now, was aiming to dent Pepsi's dominant hold on the domestic cola market and increase Coke's share from around 20 per cent to 50 per cent by 2008. Coke currently has 25 per cent of the Jamaican market.

(Observer)