With an eye towards accelerating growth in the booming export market while addressing sustainable packaging needs, Wisynco Group Limited will be adding more packaging types, such as glass and Tetra Pak, as it looks to the next phase of its multibillion-dollar expansion plan.

This was announced by Wisynco Group CEO Andrew Mahfood last Thursday at the company’s seventh annual general meeting (AGM), which was held at the S Hotel Kingston (formerly Spanish Court Hotel). Wisynco recently completed its largest capital expenditure programme in its history which allowed it to double its production capacity which will be key for it to not only satisfy the growing local market, but the broader export markets in the United Kingdom (UK), United States of America and Caribbean.

However, this growth path will be done on a more strategic basis as the company currently tests Tetra Pak-based packaging in the hotel and restaurant trade along with the introduction of glass as a packaging option for its wide array of proprietary products. Apart from this reducing the amount of plastic that will enter the environment, it will also allow for the some of the company’s products to have a longer shelf life which is currently restricted by the use of plastic bottles after carbonation.

“It’s actually three more lines. One more is going into the White Marl plant, which is a sweet beverage [space] and gives us a lot of flexibility, such as when you run shorter [product] lines, you put those [products] on that line. We’re also going to be looking at a canned line and a glass line for further diversification in packaging, and [it’s] also great for exporting. We will always produce a lot in plastic, but we’re going to expand how we collect and putting a lot more points of distribution for collection and return,” said Wisynco Group Chief Executive Officer (CEO) Andrew Mahfood in response to the diversification of packaging.

Wisynco produces its proprietary brands such as Wata, Bigga and Boom while manufacturing other brands like Coca-Cola, Sprite, Schweppes, and Minute Maid under an official bottler arrangement with the Coca-Cola Company.

William Mahfood, Wisynco Group chairman, also said, “We have started the process of producing Wata, the water brand, in Tetra Pak for, specifically, the hotel trade. What has happened is that a lot of the hotels in Jamaica have taken the decision to become plastic-free. So, we’re putting that product into the hotel trade as a test and eventually, as we start to increase production, we’ll look at putting it into the rest of the market as well. Some product is in the market, but it is initially focusing on meeting the needs of the hotels.”

This move comes after the company made different changes several years ago that saw its bottles comprising 50 per cent less plastic and reducing the bottle cap sizes as well. Wisynco, along with other Jamaican beverage manufacturers, have been contributing $1 per bottle to Recycling Partners of Jamaica (RPJ) and actively supporting the collection of bottles which is currently 41 per cent in the industry.

Wisynco will also be considering the addition of more solar energy options once it completes its current expansion as it also increases the use of liquified natural gas (LNG) to optimise on its energy costs. The company will also be expanding its wastewater treatment plant by four times the current capacity in its ongoing expansion.

All of these initiatives come after Wisynco spent the last two years doubling its production capacity to satisfy the local market demand and gear itself up for exports. The company has installed two primary lines for its beverage production since February and expects for the final line to come fully on stream by March 2025.

The company had previously mentioned a 10 per cent target of its revenue to be from exports in the future. However, Chairman Mahfood noted that based on the aggressive growth taking place in Jamaica already, that target will constantly change based on when the company sets that 10 per cent target. Wisynco’s exports made contributed two per cent of revenue or $628 million in the 2021 financial year (FY) ending June 30, and was still at two per cent of revenue or $1.17 billion in the 2024 FY. He also mentioned that the company currently ships hundreds of containers of Bigga to the UK annually.

“Our export drive has really been tempered by the fact that over the last few years, we’ve just not had enough local production. Now that we have enough, we really have adequate production [and] we’re starting to become more focused. With all of the brands [such as] Trade Winds, Tru-Juice products with some of the new products that we’re coming on stream with, with the canned line that Andrew mentioned, it’s going to give us a lot more flexibility and longer shelf life products because right now. The challenge that we have is our plastic products have short shelf life because of carbonation. So, we will have a lot more focus on the export markets with Tabitha at the helm really driving those areas,” the chairman explained.

Wisynco’s revenue jumped 11 per cent in the 2024 FY to $54.27 billion as it benefited from more manufacturing sales and an expanded distribution portfolio, but its net profit only rose five per cent to $5.19 billion as the company’s expansion sales were yet to catch up to new expenses incurred to support this continued growth.

Apart from its push to grow manufacturing capacity, the company recently purchased land in Lacovia, St. Elizabeth, just outside of Santa Cruz, which will be its latest push to add another distribution warehouse in the country. Wisynco began operating its distribution centre in Hague, Trelawny in March 2022 which has paid off for the company. Now, it plans to expand to the south-western end of the island is meant to further buttress its distribution network.

“Even though unemployment is at record lows, 4.2 per cent, that’s the measured workforce. There’s about 750,000 people that are probably not registered in the workforce. So, it’s something that we’ve recognised. The huge success in the recruiting drive that we had in Portmore; we’re obviously going to have that in Santa Cruz [and] Lacovia for that facility,” the CEO explained.

Wisynco currently has 2,300 full-time employees and 200 contract workers. The company hired 500 new workers in May for its recent expansion capacity needs, but it had a net addition of 200 persons after migration of about 300 persons.

Wisynco’s revenue grew seven per cent in the first quarter (July to September) to $14.64 billion which was its highest quarterly revenue to date. However, its net profit dipped three per cent to $1.51 billion due to the impact of Hurricane Beryl on the south coast of Jamaica, reduced spending from consumers in the back-to-school season and lower tourist numbers.

Total assets were marginally down in the quarter to $36.39 billion with the company spending $1 billion on capital expenditure and cash ending the period at $4.41 billion, a sharp contrast to the $9.07 billion it had a year ago. The company is currently working to finalise a loan from a bank for about $4.5 billion after it used its own cash to support the expansion move. Total liabilities and shareholder’s equity were $10.10 billion and $26.29 billion, respectively.

Wisynco’s stock price closed Friday at $21.14 which leaves it down two per cent in 2024 with a market capitalisation of $80.41 billion. The company will be considering its next dividend payment to shareholders in February.