Recent reports estimates, the local bottled water market to be valued at about J$3 billion, with an insignificant portion accounted for by imports. Wisynco, through its three brands – WATA, Pure Blue and Likkle WATA – according to published reports satisfies about 65 per cent of the local demand for bottled water, with that segment of the market valued at an estimated J$1.95 billion. Data from the Bureau of Standards listing bottled water available in Jamaica as at July 2011 indicate that there are 36 local brands operating under 26 establishments in Jamaica, and seven imported brands.

Market intelligence places Catherine’s Peak bottled water in the number two position, the actual percentage is not however publicly known.

It is not clear how the market for flavored water is factored into this overall water market configuration, but estimates are that it is significant and growing at a rapid pace. This segment, largely developed and pioneered locally by William Mahfood President and CEO of Wisynco, is now the battle ground between the two giants   Wisynco and Pepsi.

Having literally developed and carved out the Cran Water flavored market segment, Mahfood now finds he’s competing with his former partner, Ocean Spray, who have now partnered with Pepsi to take him on. Wisynco had marketed Ocean Spray products for 17 years, manufacturing the cranberry-flavored juices under licence. Under the licensing agreement Wisynco was to produce the cranberry-flavored water co-branded with Ocean Spray.

The Ocean Spray portfolio, at the height of its success some six years ago when it reached in excess of a million cases, accounted for more than 10 per cent of Wisynco’s revenues, said Mahfood. However, its performance waned significantly since then, with volumes falling to 400,000 cases, he said.

“The Ocean Spray juices had actually declined in the last four years and are continually declining for a number of reasons, including the fact that Ocean Spray had raised prices continually and cut back on the marketing spend,” said Mahfood. “While they were declining, other (Wisynco) brands were growing.”

At its peak Mahfood was reported to be selling in excess of one million cases of the product annually and with reports that Jamaica continues to be number one in consumption per capita for cranberry juice, the loss to Wisynco and the gain to Pepsi is significant for both companies.

Pepsi Cola Jamaica’s acquisition and partnership of the distribution contract for Ocean Spray juice drinks which took effect in September and officially launched last week will boost its business by an estimated 10 per cent, the company said.

With Ocean Spray having more than 40 juices and flavored-water products, and a business worth over US$2 billion globally, it is clear that Mahfood and Wisynco have a serious battle on their hands. “Our distribution network serves us well, it is the largest in Jamaica and we will be utilizing this network to expand the growth of Ocean Spray products,” said Carlo Redwood, marketing manager at Pepsi Jamaica in a recent press article.

It’s also clear that Ocean Spray, through Pepsi, is seeking to gain a stronger foothold in the Jamaican market with increased product offering of which they now have a small market share. “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 the launch in Jamaica.

But Mahfood has the resources and ability to respond as Wisynco has the capacity to increase production of plain and flavored bottled water by about 50 per cent. Wisynco Group is reportedly spending $400 million to add capacity to its White Marl, St Catherine plant. “The investment will facilitate an aggressive push of its CranWata product into overseas markets”, says managing director William Mahfood. Wisynco owns the formulae for CranWata, for which it uses cranberry concentrate from Ocean Spray, which controls 70 per cent of the world’s cranberry supply. The company has a contract with Ocean Spray to purchase cranberry concentrate for the next three years.

With volumes in excess of a million cases, CranWata is estimated to control more than 90 per cent of the growing flavoured water business in Jamaica, said Mahfood. The market includes GraceKennedy’s flavoured water brand Chillin, Island ’62 and the recently launched Pepsi Jamaica product Flavour Splash.

The first salvo in what is building up to be an epic battle was thrown by Pepsi Jamaica, with the launch of a cranberry-flavored water, Flavor Splash to compete directly with the rebranded Wisynco Cran Wata, (Ocean Spray brand and logo was removed from the label design).

Both companies launched with print advertisements depicting creative treatments that were very similar. Given that Wisynco was the first in the market with the stylized water splash treatment, Pepsi’s use of this creative treatment can only be viewed as a follow the leader strategy and or an attempt to confuse the market.

It’s clear that a lot is at stake and the market is profitable enough for the two companies to invest heavily to secure market dominance. Will Mahfood revise his marketing strategy of “bottle it and make it available to the average consumer”, which has so far guided his success to date? What is also interesting is that Wisynco is the local distributor for Coca Cola and the longstanding battle between the two colas are legendary. Are we to expect a similar battle over water? BM