Bottled water price hike reported - CAC probing allegations

CEO of the Consumer Affairs Commission (CAC), Dolsie Allen, on Thursday confirmed that a complaint about bottled water price increases had reached her office.

"I've not had that report before this evening, so I have to do some investigation," she said. Allen said her team is on alert, especially as water remains a critical need following the devastation caused by Hurricane Melissa.

"Normally, we have persons who, for whatever reason, increase their prices during times like these. But based on the order given by the disaster management, if persons are found to be increasing prices excessively without justification, it is cause for investigation," she said.

Some retailers have allegedly increased the cost of bottled water, citing high demand but low supply, arising from the hurricane. One Kingston retailer said the manufacturer of a particular brand has increased the price for a case, forcing him to do the same. He highlighted that suppliers have started limiting their orders.

"Mi normally buy 50 case, and the other day mi could only get 20 'cause everybody a buy water fi go country."

Several persons also told the news team that they've seen the cost of single bottles of that brand increased by $35.

However, William Mahfood, chairman of Wisynco, one of the most popular bottled water manufacturers, insisted that while demand has surged, its supply chain remains intact.

"Up to now we still have inventory. We have both lines running, so there has not been any shortage of our product," Mahfood told THE WEEKEND STAR. "The challenge is that demand is definitely higher than usual as you can imagine. That has caused stores to not maintain adequate inventory post-hurricane. But we do have, and we're trying to get supplies out to everybody."

Operating around the clock

Mahfood said Wisynco's factories have been operating around the clock to meet the spike in demand and was firm that the company has not increased prices.

"We have not increased prices, not at all. We could never increase prices now at this time. The timing of it would be very irresponsible of us. It's a commodity that's in such high demand and it's almost like a necessity, so we couldn't do that." He explained that the company has also been turning away buyers who are suspected of hoarding.

"We've been having people who call saying they want to buy 10,000 or 20,000 cases, but we refuse that. What we're doing is only selling to the existing wholesalers and retailers that we do business with and making sure that they are legitimate," he said.

Mahfood said Wisynco has partnered with Food For The Poor to donate 10,000 cases roughly 250,000 bottles of its WATA brand to families and children in need.

Retailers who are found guilty of price gouging, could face restitution or fines of up to $1 million under the Consumer Protection Act.

"We normally give persons the opportunity to correct the wrong [and] refund the money but the final thing is a sanction," Allen added.