Hey /biz/! I need some advice.
My family owns a mineral water bottling factory with an on-site well. We had tried producing and selling bottled water for more than a decade, but the competition in my country (Hungary) is too cutthroat, and lacking any connections with the big store owners we couldn't make any significant profits.
So now we want to sell the whole thing and move on. Trouble is, local investors don't really care about the food industry, so we're looking at international buyers, especially with the constant buzz about how freshwater reserves are diminishing all across the world.
Anyone know of a place online that lists industrial properties like this internationally? Google didn't give me any credible results, and all the investment firms I talked to say they only deal in offices or warehouses.
May I ask:
1. Plastic or glass bottles?
2. What kind(s) of water? Mineral (as you wrote), table, etc.? Something special about it that differentiates it (significantly) from others?
3. Approx. number of bottles annually (capacity, not actually sold)?
4. Could it be something for export?
5. Approx. price estimates (selling, leasing) in EUR?
If you can't find sales then that means your product is the problem because it's not competitive enough, be it price or quality.
Vertical and horizontal integration are a pretty common way of increasing a company's competitiveness. If you already have a production facility and your logistics down it's the natural next step desu.
Have you tried making new flavour water and shit like that? also water with low sodio and you should put some $ in your propaganda so big markets may start consider to accept it
start thinking a way of how to get attention of the people and then the market (i think) would open the big doors for u
>If you can't find sales then that means your product is the problem because it's not competitive enough
That's wrong. Though perhaps their sales channels could be the problem here. OP wrote they tried to get it sold via the (big) store owners and failed, which is no surprise. Often they have contracts with other producers or only buy from larger ones etc. It's difficult. Similar to cosmetics and hygiene products that need to be bought by chains or where it's difficult to get them placed in the stores.
Perhaps they could sell it differently. Though that's non-traditional and risky, of course. They could make it into a premium brand (if water quality allows). They could sell it to other countries (that's why I asked about export), perhaps with a special story around it to make it worth the extra effort.
In case someone has the full report, I'd appreciate it.
>new flavour water
From what I read, they (Hungarian bottled water companies) already do that. Usually it's not good. It's watering down (hihi) the brand.
2. Subsurface medium-hard water (600mg/l minerals, 400mg/l hydrocarbons)
3. I can't tell you the bottle capacity, but the well's output is around 240 million liters/year
4. We'd definitely love to export, but we don't know who to contact. I started this thread hoping to get some links to sites that deal with international property and resource trading.
5. We were thinking around €670k for selling price and €65k/year for leasing
The big problem in Hungary is that unlike western countries, there are no proper distribution networks, so your only option is to manage contracts with each individual store yourself. And unless you're good friends with someone on the inside, they usually pay pennies for your products and sell them with an outrageous markup. Local farmers have been protesting against this for years.
Then start doing something new, maybe some new drink cola or something? remember that if you want to be success you don't have to try to do the same as the big companies,try doing something different that shows you are the other option for those who are not completly satisfied with their products,you just have to think,look in the markets what's missing or what may the people want to buy-
also the propaganda stuff it's something important,you cant get within people heads if you dont have a very catchy propaganda stuff,have you thought about making water in big tanks,like drums (dont really remember the name lol) anyway it's a good idea if you offer people to delivery this stuff with the machine that colds or heats the water,and some soda or flavour new stuff,all deliver to home it can work pretty well(look at the pic)
If not,what you can do it is to offer the other water industries to work for them like a second factory,etc
While I'm currently calling people about this, let me ask some questions in the meantime.
1. How hard would it be for you to switch to glass bottles?
2. In case of leasing, that includes operating staff for the plant? What other operational costs should I expect that aren't covered with the annual fee?
Not OP, but with a product like this, selling to the end customer is pricey if one is unknown and the product has little margin. They compete against big players, even when they do something novel that could be easily copied.
Some ad hoc ideas: become the house brand of a larger hotel or restaurant chain. Become the drinking water supplier of a larger company (with many branches).
pic: health-aware people drink water.
>1. How hard would it be for you to switch to glass bottles?
Most of the machinery that we have is pretty old and in need of replacement. Also, they're for PET bottles, so they wouldn't be suitable for glass.
>2. In case of leasing, that includes operating staff for the plant? What other operational costs should I expect that aren't covered with the annual fee?
We're only providing access to the land (3500 m2 fully paved), the building (350 m2), the well and public utilities (electricity, gas). Anything else would have to be covered by the buyer.
Competitors aren't interested, and major stores will only buy at ridiculously low prices, if at all due to market saturation.
We'd rather sell it for export in a foreign market, but we don't know the right channels.
I meant selling the company (not the product).
What about the ideas posted above? Become the house brand of a hotel chain or similar?
Re foreign market, is your water something that stands out? A special taste? Or would it be more a branding game?
>Become the house brand of a hotel chain or similar?
If you happen to know any that are interested, I'm all ears.
>is your water something that stands out? A special taste?
The factory is a town known for its thermal water and is basically a pleasure resort. Heavy industrial activity has been forbidden for decades to protect the water reserves. The water itself has a very mild, fine taste, and, as previously mentioned only 600 mg/l of mineral content.
I have to think about prospective larger customers (perhaps here in Germany). Though the bottled water market is highly competitive here as well, except for Evian I couldn't name a foreign brand immediately. Not sure how many foreign sources for local brands exist.
You think it's economical to transport the water to, say, Germany and have it bottled here?
For some future development (re int'l water demands), I found some ideas here:
>You think it's economical to transport the water to, say, Germany and have it bottled here?
Sure. We could export it at 2€¢/l + transport fees, which would make it still profitable to bottle and sell in Germany. We could also do the bottling ourselves in standard 19l watercooler bottles, if they were supplied.
Hey, I am from Austria and a beverage distributor. I only sell to restaurants, bars, hotels and stuff. But with a good supplier of watercooler-bottles, I could expand into that field as well. Where in Hungary are you located?
The factory's in Hajduszoboszlo (eastern Hungary). The freeway is close by and there's a railway station in town, so transportation wouldn't be a problem.
If you're seriously interested, drop me a line at firstname.lastname@example.org (temporary address, because lol 4chan)