Wisynco to add capacity with backing of Coca-Cola
Published:Wednesday | December 1, 2010 | 12:00 AM
Wisynco Group which already manufactures two of beverage giant Coca-Cola Company products, and distributes a handful of others, on Monday signed an agreement making it the exclusive franchise distributor for the global company's brands.
At the same time the agreement paved the way for the local operation to add more of Coca-Cola products to its production line on a phased basis.
The size of the deal was not disclosed, but it will see Coca-Cola investing capital in Wisynco's build out of capacity.
"Investment obviously is an essential element of the agreement that we have reached and we will substantially increase investment over the next five years," said Roberto Mercade, general manager at Coca-Cola with responsibility for Venezuela and the Caribbean region.
"The further normalisation of this already successful partnership will allow both partners to build on each other's strengths to continue delivering world class service and product offerings in the Jamaican market," he said.
The investments will cover a new cold drink equipment and bottling capacity, Wisynco boss William Mahfood told Wednesday Business, from 10 million cases per year to 15 million in the next two years.
Wisynco manufactures Minute Maid fruit coolers and juices and energy drink Full Throttle on behalf of Coca-Cola, for distribution in Jamaica.
A specific timeframe for the start of production of additional brands was not given.
The bottle partner agreement continues to limit Wisynco to the Jamaican market for now, but the idea has been floated that Mahfood could start distributing to certain points in South America, but that would come under a different or extended agreement over the long term.
Wisynco also distributes Coca-Cola, Coca-Cola Light, Sprite, Sprite Zero, Fanta and Schweppes carbonated beverages, Dasani Water and Powerade on the local market, but it was not disclosed which of these products would be made at the St Catherine plant under the new arrangement.
"You will see local production of a number of products that we sometimes import; that will be a big difference going forward," said Mercade.
Mahfood said that the sale of Coca-Cola brands accounts for a substantial percentage of his company's sales, which totalled more than J$10 billion at the end of June 30, 2010, he said.
He declined to give a projection of sales growth.
Wisynco has been a Coca-Cola distributor on a non-exclusive basis since 2006.
Mahfood said he would also be investing J$500 million to increase the company's bottling capacity, non Coca-Cola-related, over two years.