Susan Gordon, Business Reporter

Snow Beverages, a New York company, is investing about half a million dollars on market tests on a new mint-flavoured product.

Wooed into the $25 billion beverage market by wholesale giants MegaMart at a food show in New York in July, Snow said its tests would be done in conjunction with the supermarket warehouse over a 60-day period.

MegaMart, owned by Gassan Azan, will be the product's exclusive distributor over the test period.

Chief executive officer for Snow, Stru Strumwasser, says Jamaica provides an excellent avenue for entrance into the rest of the Caribbean market, adding that Kingston was convenient with an inexpensive shipping route.

He is spending US$5,000 to US$10,000 on the market tests, he said.

"It was the perfect opportunity," Mr. Strumwasser told the Financial Gleaner.

"In Jamaica and the Caribbean the flavour profile of mint is good because it is seen as much more calming and there's a lot of mint in the Jamaican cuisine."

New products

MegaMart said inviting Snow to Jamaican was in line with strategy to offer new products to its customers on a continuous basis.

"If you shop this month and come back next month there should be something new," said director of operations for MegaMart, Jeffrey Gordon.

MegaMart has already secured about 720 twelve-pack cases, at a cost, based on Financial Gleaner calculations of about $1 million.

With more than 800,000 cases or 19.2 million bottles of soda consumed per month according to industry sources, Strumwasser will have to compete successfully with market leaders like Red Stripe and Jamaica Beverage Limited.

"It's way too early to give a projection of the market share we'll go after," said the CEO of the one-year old Snow.

An optimistic Strumwasser said he would gauge the extent of penetration possible from the sales generated from the market test.

"He is trying to partner with a local distributor who would distribute the products or manufacture it here, " said MegaMart's Gordon. Strumwasser declined to say who the local distributor might be.

The 355 milli-litre bottles of mint drink will be retailed at $112 each, which Strumwasser claims is 10-15 per cent above comparable drinks on the market. But there are fruit flavoured drinks on the market retailing at $40 to $50.

"There are health benefits to the mint flavour, for indigestion and mint relaxes and smoothens the muscles in the alimentary canal," said Strumwasser.

The product is created for an adult palate, but has been a hit, he claims, with children in the US market.

"It certainly does not hurt your breath," he added.

The product is said to be all natural, made from peppermint and spearmint, and sweetened with natural cane sugar, with a lower calorie count than the natural soda.

Snow Beverages was launched in July 2005 in the US$60 billion beverage market, and is available, he said, in more than 250 stores in Manhattan.

susan.smith@gleanerjm.com