THE FIGHT FOR market share in the local soft drink sector is expected to intensify following a $26 million deal involving Barbadian conglomerate Goddard Enterprises Limited (GEL).
For the past 13 years, R.L. Seale & Company Limited has distributed Pepsi and associated products, including Mountain Dew, 7Up, and Ju-C, manufactured in Trinidad and Tobago.
However, two months ago, Caribbean Distribution Partners Limited (CDPL), a joint venture partnership formed by GEL and Trinidad and Tobago’s Agostini’s Limited, acquired Pepsi-Cola Trinidad Bottling Company Limited from Central American Bottling Company Limited and Blue Waters Limited.
CDPL chief executive officer, Barbadian Tracey Shuffler, said this meant that CDPL now controlled the distribution rights for Pepsi, Mountain Dew, Ocean Spray and 7Up in the twin-island republic and Barbados. CDPL also now owns the rights to distribute Peardrax and Cydrax in these markets.
“The development of this beverage distribution company will grow as new beverage brands are added in the coming months,” Shuffler said as she reported on the company’s performance last year.
R.L. Seale started importing Pepsi products from Trinidad in 2003 after Barbados-based producer Bottlers (Barbados) Ltd (BBL) ceased production in May of that year because of what BBL general manager Pierre Evans called unprofitable operations.
At the time, he estimated the company’s share of the soft drink market to be between ten and 15 per cent.
The Pepsi transaction is not the only major one GEL, through CDPL, has closed within recent months and which will have an impact on the Barbados market.
Last October, CDPL purchased Vemco Ltd, which produces Swiss products, including pasta and ketchup. Commenting on the acquisition, Shuffler said: “The export potential of this brand is significant and we aim to continue to build sales on this front.”
Hanschell Inniss Limited is owned by the CDPL joint venture. With the acquisition of additional lines like Swiss and expansion of other products, this distributor is planning some expansion.
“Hanschell Inniss Limited has shown some improvement in the fundamentals of the business but will have to continue to build sales, improve efficiencies and strengthen talent in order to realise the latent potential of the business in a competitive market,” Shuffler said.
She also announced that “a major expansion of the warehouse, located at Fontabelle, is planned to facilitate the expansion of major brands being marketed and distributed by the company”.
Agostini’s chairman Joseph Esau recently reported to the company’s shareholders that the group was able to increase its 2016 revenue “as a result of our first full year of the joint venture with [GEL]”.
“Our fiscal year 2016 saw our group confronting the challenges of the Trinidad and Tobago economy, while making headway with the operations we now control in the Eastern Caribbean, through [CDPL],” he added.
