Ocean Spray distributorship means 10% more business for Pepsi Jamaica

Published: Friday | September 21, 2012 Comments 0

Pepsi Cola Jamaica Bottling Company's acquisi-tion of the distribution contract for Ocean Spray juice drinks will boost its business by an estimated 10 per cent, the company said Wednesday.

Pepsi Jamaica took over the distributorship on September 1, but officially launched the partnership Wednesday.

"Our distribution network serves us well, it is the largest in Jamaica and we will be utilising this network to expand the growth of Ocean Spray products," said Carlo Redwood, marketing manager at Pepsi Jamaica.

Ocean Spray has more than 40 juices and flavoured-water products, a business worth over US$2 billion globally.

The Jamaican contract was previously held by competing beverage company Wisynco Group, which lost that right earlier this year when Ocean Spray Incorporated announced in mid-January that it was expanding its partnership with PepsiCo International in an agreement to last 20 years.

Pepsi Jamaica, which is a subsidiary of CabCorp, has already leveraged the new partnership with the launch of a cranberry-flavoured water, Flavour Splash. CabCorp is PepsiCo's bottling and distribution partner in the region.

"The assorted Ocean Spray juices have always been a part of a healthy lifestyle and with this exclusive distributorship we hope to make cranberry juices the favourable and healthy choice for Jamaica," said Gustavo Flamenco, commercial director for Pepsi Jamaica.

While neither Redwood or Flamenco disclosed what the marketing budget would be, the executives said the company will now be rolling out a marketing and promotional campaign along with partner Ocean Spray. Flamenco also said that with the partnership they expect to bring new innovations to the market within the next couple of months.

The company's recent expansion with a 30 per cent additional plant capacity, at an investment figure of US$10 million, also augurs well for the partnership, said Flamenco.

Pepsi Jamaica is planning a similar investment in three years to add another 45 per cent to 60 per cent of capacity at its Spanish Town Road, Kingston plant.

"The new investment will come in other areas of supply chain such as storage, replenishment of products, route to market and in the near future we will be evaluating a new bottling technology," the commercial director said.

Ocean Spray Inc said the the Pepsi partnership will allow its products to penetrate deeper into markets in which they have a small presence.

"This alliance will allow us to expand our worldwide presence, expand and grow our brand and distribution in the Latin American market where we are not presently," said John Kaczynski, business development manager for Ocean Spray, speaking at Wednesday's launch in New Kingston.

He said Jamaica continues to be number one in consumption per capita for cranberry juice, with robust sales of Ocean Spray products in excess of one million cases a year.

sabrina.gordon@gleanerjm.com




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