Licensed Source Of Mineral Water Equity Partnership Business For Sale

Business description

Bottle and sell new brand of non-carbo-gaseous natural mineral water (Still water - without CO2) in Romania that is exceptionally pure and low in mineral content.

The business for sale includes the licence for exploitation and a large plot of land for bottling plant. The project shall be developed as a green field investment.

Property information

Real Estate:

Real Property Included

Location:

The source is located 800 meters below ground, and is located in an area that is protected by the strictest environmental regulations in Romania. The water has been proven to be micro-biologically pure, without gases, and has a very low dry residue. The yield is consistently 10 liters per second (l/s) or 36,000 liters per hour (l/h).

The Project is located in the central region of the Oriental Carpathians. The main trait of the relief consists in the prevailing of the mountain areas, the latter occupying more than 60% of the territory of the county. In the central part are situated the volcanic chains of the mountains Gurghiu (with the top Prisca, 1777 m) . The geographical position of the county, as well as the existent geological forms, give the county a diverse natural frame and various faunal and floral geo-background. Here , the forest source occupies more than 30% of the county's surface.

Premises details:

Plot of land of 27,000 sqm for Bottling Plant.

Business Operation

Expansion potential:

• Projected 3-5% annual growth in demand for mineral water.
• Preference for domestic brands.
• Increased interest in healthy lifestyle choices.
• Distribution support from the major national beverage distributor.

Competition / Market:

Romania has over 60% of Europe's mineral water resources, but is currently only taking advantage of 20% of them. The market is competitive, with a significant number of producers. The estimated market size for mineral water purchases is around 1 billion liters. Mineral water consumption has steadily increased during the past 15 years, and demand is predicted to increase around 3-5% annually. Consumption presently equals 50 liters per capita per year—higher than Croatia, Bulgaria, Russia and the Ukraine. This represents half the average consumption of all of Western Europe. In comparison, Czech Republic, Greece and Hungary’s average annual per capita consumption rates are 92, 105 and 128 liters, respectively, Spain’s equals 121 liters and Italy’s is 205 liters. In 2010 consumption levels remained the same as in 2009, even though buying power decreased significantly. Market statistics show that Romanian consumers prefer mostly carbonated mineral water (70% of total market). Competition The following companies and associated mineral water brands currently cover 70% of the Romanian market: • Coca-Cola HBC/Worcester Apemin Dorna & White Spring • Romaqua Borsec • Mineral Waters Bucovina • Apemin Tusnad Fairy Spring & Tusnad • European Drinks Spring Wonderland The remaining 30% is comprised of new mineral water products that have been launched during the past years.