Susan Gordon, Business Reporter

Pepsi-Cola Jamaica Bottling Company Limited has set sights at 10 per cent of the water market, having launched a new line of flavours at the top of the month under the Essential brand.

General manager for Pepsi-Cola Jamaica Andrew Reid, told the Financial Gleaner that the company would have invested a moderate J$3 million to bring the flavoured water to market, called 'Aqua Essential' purified drinking water.

"Its low budget," he said of the investment.

Market research

The biggest cost item was market research, which Reid said revealed that there was a sizable market for flavoured waters.

"Our estimate of the water market is about three million cases per annum," he said.

"This says we should be doing about 300,000 cases per year."

At three million cases, Jamaicans would be consuming 72 million bottles of water per annum.

"We want to get at least half of this amount in the first 12 months," said Reid.

Achieving sales of 150,000 cases for the first 12 months would enable it to recoup the investment it made in the new product.

Additionally, he theorised that Pepsi's entry into the flavoured water market could build the market beyond its current consumption levels.

The water, when it hit the shelves, he said, would be priced less than a bottle of soft drink but a little higher than regular water.

Dramatic rise

At present the company's non-carbonated products contribute 30 per cent of Pepsi-Cola Jamaica's revenue, up from five per cent when the company first launched into that end of the market five years ago.

"It's a dramatic rise," Reid said, adding that the flavoured waters may well perform similarly.

Pepsi Jamaica 's non-carbonated brands include Tropicana Juice Drinks, Tropicana 100 per cent Juices, Gatorade, Essential Water, Aquafina and Toma its newest non-carbonated beverage.

Its sodas include the flagship Pepsi, 7up, Mountain Dew soda, Ting and five flavours of D&G soft drinks.

susan.gordon@gleanerjm.com