US Market
Increased costs and a general slowdown in consumer demand spliced into Wisynco Group Limited’s bottom line at year ending June, but the beverage manufacturer and consumer goods distributor says it has since seen signs of a turnaround.
Wisynco Chairman William Mahfood said the company faced increased costs, including for raw materials, but tried to hold prices steady and didn’t pass on all of it to customers.
“In addition to that, we’re capturing now a lot of expenses related to the new expansion, both operations, production and sales – the commercial side of the business – in anticipation of this new business which is now just rolling out,” Mahfood said.
At the top of the month, just before releasing its year-end results, Wisynco disclosed a new partnership and acquisition of a minority 30-per cent stake in Ringtail Holdings that will see it producing and distributing various alcoholic beverages handled by Select Brands Limited, a subsidiary of Ringtail. The deal with Ringtail, which was struck on July 25, resulted in the acquisition of the production assets of Ringtail Bottlers Limited by Wisynco.
The company also recently wrapped up a $7 billion expansion programme that saw the installation of three new production lines including Business Unit Three, BU3, which has given Wisynco the capability to produce beer along with canned versions of beverages like Boom energy drink and Bigga soft drinks.