Watch out, Red Stripe! Wisynco is looking to bring some competition to the alcohol market.

Now, normally when you think about Jamaica and rum and alcohol, the two names that come to mind are Wray and Nephew and Red Stripe.   

Wisynco is known for manufacturing and distribution, including some pretty big brands line Coca Cola, Data and Cran Wata. But now they’re looking to flip the script on Jamaica’s liquor industry.

The company has announced plans to build a new state-of-the-art canning and brewing facility. 

Taking Stock Analyst David Rose actually broke the news first on Taking Stock. The company received approval from the National Environmental and Planning Agency, NEPA. NEPA publishes its approvals, so that gave it away before the company made its official announcement.

It’s exciting news for Wisynco because it’s so different from what the company does right now. And even though the company is 60 years old, this would be their first time entering the liquor industry.

The company hasn’t revealed any details yet, like what kind of alcohol they’ll be making or the timeline from approval to full operation. But the language in the permit does suggest spirits like rum and other fermented products beyond beer. 

As of right now, it’s looking like these would be Wisynco-owned brands of alcohol. So, not like they’d be manufacturing and then distributing a brand like Ciroc.  

But as exciting as it is, this could be an uphill battle. Because even though the Jamaican liquor market is quite expansive, there are a few players who dominate the market.

Wray and Nephew has Jamaicans and non-Jamaicans alike in a chokehold. And whoever decided to start making flavoured Red Stripe beers definitely should have gotten a raise. That sorrel Red Stripe, mmm.

So competing against companies with such a strong and loyal customer base could be an issue. But like I said earlier, WISYNCO is 60 years old. They can probably figure it out.

Now for my investors. WISYNCO is listed on the Main Market of the Jamaica Stock Exchange. According to their Q3 results, revenues are up about 5% to $13.7 billion for the quarter. But net profits are down 12%, and that’s mainly due to the depreciation of equipment.   

The stock closed trading on June 30 at $21.12. That’s down 1.5% since the start of the year. According to data from mymoneyja.com, they’re trading at a PE of 17.

And that’s the bottom line.