Stephen Dawkins, general manager of Jamaica Beverages Limited.
Soft drink distributor Jamaica Beverages Limited is preparing to launch a marketing assault designed to grab a bigger slice of the flavoured beverage market here for its range of Trinidad-made products.
The company's new general manager, Stephen Dawkins, says by the end of next year he is looking to register a 30 to 40 per cent growth in sales, and that the company is hiking its marketing budget by about 50 per cent to create inroads.
Industry sources estimate that more than 12 million cases of carbonated drinks are sold each year in Jamaica, with Pepsi Jamaica claiming the lion's share.
Fruit-based beverages are not counted in those volumes, a market in which Jamaica Beverages also participate with its canned drink Fruta.
Carve out a significant market share
"I intend to garner and carve out a significant market share for the company," said Dawkins, who on December 7 replaced Paul Shoucair at the six-year-old Jamaican subsidiary of Trinidad's SM Jaleel Limited, one of the oldest drink manufacturers in the Caribbean.
Dawkins formerly worked with Jamaican rum maker J. Wray and Nephew Ltd.
Dawkins did not specify whether his Jamaican outfit would be looking to grow the market - which some in the industry say now spans some 10,000 client accounts in Jamaica - to secure the additional share it is eyeing, or was intent on pulling such a large chunk of sales from its competitors, including Wisynsco and Pepsi Jamaica.
Jamaica Beverages markets brands such as Busta, Chubby, Fruta, and Viva flavoured water. These products along with Classic Cola, Cole Cold and Oasis purified drinking water make up the SM Jaleel products, which are said to be marketed in some 60 countries.
Jamaica Beverages' operation is solely that of distributor within Jamaica.
Rival Wisynco manufactures the Bigga brand of soft drinks and the plain and flavoured purified water under the Wata label. The William Mahfood-led company also distributes Coca Cola, energy drinks and the Ocean Spray and Welch brand of juices.
Pepsi Jamaica, which boasts some 18 brands in its portfolio, through its long-standing partnership with Desnoes and Geddes Limited (D&G), now trading as Red Stripe, manufactures a range of D&G soft drinks as well as its other brands Ting, Mountain Dew, Toma, Tropicana, Gatorade and its water product, Essential.
Central America Beverage Corporation (CABCORP), the new majority owner of Pepsi-Cola Jamaica Bottling Company Limited, recently announced that it was pumping US$10 million into its Caribbean assets, including a US$3 million to US$4 million investment in the local plant to boost production capacity.
Overhauling its distribution system
Jamaica Beverages, as a private company with conservative owners, does not disclose figures, including capital expenditure, but did indicate that the company was planning to overhaul its distribution system to drive the projected market expansion.
"We will look at the overall system and make sure that our brands are in every outlet where soft drinks are sold," Dawkins said.
Instead of relying solely on wholesale distribution, he said, Jamaica Beverages will be pushing a direct distribution strategy via contracted van sales.
"We are also looking at how to have better supply chain system in terms of route to market for the products."
Beefing up advertising
Dawkins is also looking to ramp up advertising from the earmarked marketing spend.
"We will be pushing more above-the-line marketing, mainstream advertising, more radio, TV and print," he tells Wednesday Business.
But the marketing push could also involve the launch of new product lines on the Jamaican market. Dawkins said his company was contemplating introducing the Oasis purified drinking water here although no decision had yet been taken on the possible move.
Jamaica Beverages' products are warehoused at its 25,000-square foot headquarters at the Naggo Head Industrial Complex in Portmore, St Catherine and a 10,000-square foot facility in Montego Bay.
The company employs more than 200 workers, including salespersons, merchandisers and administrative staff.
sabrina.gordon@gleanerjm.com