Drought, heat lift bottled water sales
…producers report uptick in demand as consumers stock-up
PROLONGED drought, water restrictions and hotter-than-normal temperatures are driving up bottled-water sales in Jamaica, with major producers reporting double-digit growth as households and businesses seek alternative sources of drinking water.
At Wisynco Group, one of the country’s largest beverage producers, bottled-water sales have risen by double digits this summer as water shortages in some communities and intense heat, push up consumption.
Chairman William Mahfood told the Jamaica Observer this week that the company has been experiencing a “huge increase in demand” for its Wata brand, especially as piped-water supplies remain disrupted in some areas.
“Right now there are areas in Spanish Town that have no water at all, and parts of Kingston are having lock-offs. Because of all of that, there has been a massive increase in water consumption and also a higher demand for it,” he said.
COY…our 876 Spring Water has recorded a notable increase in sales, while Catherine’s Peak Spring Water, particularly our five-gallon refillable bottles, continues to be a popular choice for households and businesses
Mahfood said that the increased demand is being compounded by unusually hotter conditions this summer occasioned by the hotter-than-normal conditions amid the developing El Niño pattern which has forced consumers to stock up on fluids to remain hydrated.
“In terms of water sales, at Wisynco we see where these are definitely increasing,” Mahfood said as he noted that the company’s overall growth in the area now exceeds 20 per cent.
Pointing to current increases as part of a longer-term growth trend in the bottled water market where sales often trend up during the summer period, Mahfood said Wisynco has recorded annual water sales growth of more than 40 per cent since it began operations.
The Lakes Pen-based company has responded to the heightened demand by maintaining its focus on increasing production and expanding its facilities, while continuing to invest in capacity to ensure adequate supply.
MAHFOOD…right now there are areas in Spanish Town that
have no water at all, and parts of Kingston are having lock-offs. Because of all of that, there has been a massive increase in water consumption and also a higher demand for it
While water sales typically ease as temperatures cool, Mahfood expects current demand to moderate only slightly towards year-end.
“The sale of bottled water always does taper off once the cooler climate comes in, but I don’t think it will significantly,” he said.
For GraceKennedy Limited (GK), another major distributor of spring water brands Catherine’s Peak and 876 Spring Water, management also reported a noticeable increase in demand since the start of the summer period in May.
“At GK we have seen increased demand for our spring water products compared with the same period last year. While demand usually picks up at this time of year, the current heat conditions are likely also contributing to the increase,” GK Foods CEO Andrea Coy said in response to BusinessWeek queries.
“Our 876 Spring Water has recorded a notable increase in sales, while Catherine’s Peak Spring Water, particularly our five-gallon refillable bottles, continues to be a popular choice for households and businesses, given its consistent quality and convenient delivery option,” she added.
Coy said as demand for GK’s spring water products continues to grow, the consumer group’s focus remains on maintaining strong service levels, ensuring products are readily available and keeping supplies sufficient to meet consumer needs.
“We continue to strengthen these brands and explore opportunities for further growth and innovation,” she stated.
On the retail side, PriceSmart also reported an uptick in demand, particularly for its Member’s Selection bottled water product. The purified water, which is mostly packaged as a case of 32 500-millilitre bottles, remains among the company’s top sellers at its Kingston and Montego Bay locations.
A manager at one of the locations, who was not authorised to speak publicly, said that since the start of summer, a container of water sometimes sells out within about an hour of arriving at the store.
“Water is normally a big seller for us…we get about two to three containers a day, it goes very fast and we typically sell hundreds of cases daily,” the manager said.
He said the prolonged dry spell and hotter temperatures were adding to consumers’ need to purchase and stock up on water, particularly among households facing unreliable piped-water supplies.
The demand increase coincides with water prohibition orders that took effect Monday across seven parishes as authorities seek to conserve supplies amid worsening drought conditions. The restrictions cover Kingston, St Andrew, St Thomas, St Mary, Portland, St Ann, and St Catherine.
The heat is also expected to remain a factor in water demand. The Meteorological Service of Jamaica, in a forecast issued on Monday, indicated an 80–90 per cent likelihood of above-normal temperatures between August 17 and 23, with expectations for warmer nights and hotter days.
The Met Service also warned that the above-normal temperatures could increase the risk of heat stress, particularly during periods of little or no rainfall.