Mahfood in talks over Ocean Spray partnership
Published:Friday | March 2, 2012 | 12:00 AM
Sabrina Gordon, Business Reporter
William Mahfood, whose company Wisynco has lost the rights to distribute Ocean Spray in the local market, is still attempting to salvage aspects of the partnership.
Wisynco's relationship with the American drinks company extends to the co-branding of its proprietary brand Wata with Ocean Spray to produce a line of flavoured-water products.
Mahfood was unwilling to comment on whether the product would survive the transition of the distribution contract from Wisynco to PepsiCo, which now has exclusive rights to manufacture and distribute Ocean Spray's portfolio of cranberry and blueberry beverages in Latin American markets, including Jamaica.
Mahfood declined to speak to the implications for his company, but insisted that for now nothing has changed.
"We are in discussion with Ocean Spray now," he told the Financial Gleaner.
Last night in an update, Mahfood said talks had now shifted to PepsiCo.
The expanded partnership between PepsiCo and Ocean Spray Cranberries Inc was announced mid-January, and while the arrangement will last 20 years, the effective start date was not disclosed, suggesting it might differ across markets.
The companies, whose business association extend back to 2006, will collaborate on marketing and product development, their statement said.
Ocean Spray redirected Financial Gleaner queries on its alliance with Wisynco to PepsiCo.
"Ocean Spray and PepsiCo have entered into a trademark and licence agreement to manufacture and distribute a portfolio of cranberry- and blueberry-based beverages in Latin America that includes Jamaica. As PepsiCo International is now responsible for the business, please contact them on the plans for the Jamaican market going forward," said John Isaf of Ocean Spray corporate communications.
Ocean Spray also does pomegranate, cherry and other juice drinks, but no reference was made to those lines in the arrangement with PepsiCo.
Queries to PepsiCo were acknowledged but unanswered up to press time.
Wisynco distributes more than 4,000 products that include several major foreign-owned brands, including Sprite, Coca-Cola, Schweppes and Welch's.
Flavoured-water market captured
Its Ocean Spray Wata products, first launched in 2008, now come in three flavours: cranberry, white cranberry, and cranberry-strawberry, which Wisynco says have captured 60 per cent of the local flavoured water market.
Wisynco is the bottler and exclusive distributor for the flavoured-water product in the Caribbean, as well as South America and Central America.
The beverage company distributes 110 brands, representing some 4,000 products, in the beverage, and grocery markets, and is also a local franchise holder for Häagen-Dazs ice cream, Wendy's and Domino's Pizza.
Wisynco recently branched out beyond food to buy an undisclosed share of a new start-up financial company called BCW Holdings trading as BCW Capital, which is expected to begin operations by mid-year.