Catherine’s Peak sales set to hit $1.5b

Catherine’s Peak Bottling Company is on a path towards $1.5 billion in sales this year.

The water bottling company owned by GraceKennedy Group expects to rebound from unspecified challenges and ramp up sales outside of Kingston, alongside additional plans to expand distribution regionally.

“We had supply issues last year,” said GraceKennedy Group CEO Don Wehby.

But: “We expect revenues to increase this year by double-digit levels. That will impact the valuation in the short to medium term,” he said.

The water brand generated $68 million in annual profit from revenue of $1.3 billion in 2022, up from $91 million profit from revenue of $1.2 billion the previous year.

GraceKennedy first invested in the Catherine’s Peak brand five years then doubled its holdings in a takeover of the company in February.

“We will remain private,” Wehby said, indicating that GK had no plans to list Catherine’s Peak on the Jamaica Stock Exchange.

In February, GraceKennedy paid $612.5 million for an additional 35 per cent interest in the water company, which pushed its holdings to 70 per cent. The conglomerate had paid $525 million for the initial stake in 2018.

The current acquisition moved Catherine’s Peak intrinsic valuation from $1.5 billion to $1.75 billion.

Up to December 2022, Catherine’s Peak held net assets of $270 million, from $260 million a year earlier, according to GK’s annual report.

Catherine’s Peak is one of the main bottlers of spring water within Jamaica. GK stated that there are opportunities to expand its distribution outside of the local market through exports to the Caribbean and US markets.

Catherine’s Peak started bottling water 30 years ago in the Jamaica Blue Mountains. It distributes in handheld and five-gallon sizes. GraceKennedy also owns another water brand called 876, which is retailed in handheld sizes and was acquired in 2021.

steven.jackson@gleanerjm.com